Jaswant asks RBI, Sebi to take action

Finance Minister Jaswant Singh on Monday swung into action asking the Reserve Bank of India and the Securities and Exchange Board of India to take necessary action to improve the health of the bourses following the unprecedented crash that wiped out huge sums of market capitalisation.

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"I have discussed it with Sebi and RBI. Although I do not have any authority, my advice is to be cautious," he told reporters after the meeting of top Bharatiya Janata Party leaders at the prime minister's residence.

Attributing the stock market crash to spread of uncertainty in the market and lack of confidence, Singh said: "If a responsible leader who aspires to join the government makes a statement, it will have an effect on the market sentiments."

On whether the FIIs deliberately manipulated the market, Singh said: "I would be extremely cautious to comment on this issue. We have a healthy market and our economic fundamentals continue to remain strong."