Search the Internet          Tips  Sites: Finance, Investment

Regulatory defects led to scam: Jaswant

Finance Minister Jaswant Singh on Wednesday appeared before the Joint Parliamentary Committee looking into the stock scam and told the MPs that there were deficiencies in the regulatory system that could have led to the market scam.

"The finance minister agreed that there had been some deficiencies and these must be plugged with continuous vigilance and alertness," JPC chairman Prakash Mani Tripathi told reporters after a 150 minute interaction of the committee members with Singh.

Singh also agreed that adequate action was required to see that the scam-like situations did not recur and the government should take adequate action, especially when the market becomes very volatile,Tripathi said.

The members also queried the finance minister as to why the government issued ordinance on the Unit Trust of India when the JPC, which was also looking into the temporary freeze on UTI's flagship scheme US-64, had not completed its report work.

Singh in his reply said that since "the government had come in for a lot of criticism for not carrying out these changes (in the UTI) early and that the redemption and other problem was there, the ordinance was passed".

The finance minister, however, assured the JPC members that any suggestion and recommendation to be discussed by them or any views accepted by Parliament would be incorporated in the UTI amendment bill that will be introduced in Parliament, Tripathi said.

ALSO READ:
Bill Gates in India
The Capital Markets Crisis
More Money Headlines