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CPI(M) blames UPA for stock market crash

It said that two years was not a small time and the UPA had not done much to implement issues affecting the poor.

india Updated: May 22, 2006 17:30 IST

Describing the crash in the stock markets as a "bubble that was bound to burst", the CPI(M) hit out at the UPA government for not taking adequate measures to check speculation by the FIIs and safeguard the interests of small investors.

"We have been warning the government of the artificial rise in the stock market. It is only corroborating what we have been saying. It's a bubble that was bound to burst. The small investors have burnt their fingers," CPI(M) leader Rupchand Pal said.

He alleged that the American fund managers were "pressurising" the government on policy matters like definition of traders and investors. "That is why if it is cold in the US, we tend to sneeze".

"Even the steps taken by the regulator SEBI are too inadequate and too late", Pal, accompanied by his party leader in Lok Sabha Basudeb Acharia, said, and added that the crash was not a "correction".

Maintaining that the stock market did not reflect the economy, Pal said that the IPO scam had also exposed the vulnerability of the share market.

Charging the government with having failed to fulfil its promises in the Common Minimum Programme (CMP), Acharia said, "two years is not a small time" and the UPA government has not done much to implement issues affecting the poor and middle class sections of the society.

First Published: May 22, 2006 17:30 IST