Stock market plunge a 'manufactured crisis': FM

Finance Minister P Chidambaram blamed uninformed reporting, for the market crash.

Published on: May 18, 2006, 18:50:00 IST

None | By Anonymous, New Delhi

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Dubbing as "manufactured crisis," the sharpest fall in the history of stock markets, Finance Minister P Chidambaram sought to bring back foreign funds, saying no Foreign Institutional Investor has been assessed as a trader for tax purposes.

"No FII has been assessed as a trader as they are investors and this is a manufactured crisis based on uninformed reporting," he told reporters shortly after the stock market closed trading on Friday after a fall of 826 points on reports of withdrawal by FIIs.

Calling it uninformed reporting, which led to the market crash, he said, "There is a lesson for everybody. Uninformed reporting and reaction to uninformed reporting is not a desirable thing."

Earlier on Friday, Chidambaram had sought to play down the plunge saying that every movement and swing of the market did not require a comment.

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