Left demands ban on PNs to counter security threat

The CPI(M) today called upon the United Progressive Alliance government to immediately ban fresh issues of Participatory Notes and phase out the existing ones within the next few months in the wake of the national security advisor's recent statement about stock markets being used by terrorist groups.

Reiterating its demand to stop opening up the retail trade to foreign direct investment, the Left party also decided to prepare a note on regulating the corporate sector in retail trade to be submitted to the government.

The CPI(M) Politburo, which met here on February 17-18, expressed serious concern about the national security advisor's statement and urged the government to take steps to prevent stock markets being used by terrorists.

The first step was to ban investments made by foreign institutional investors through Participatory Notes because the source of funds through this route was unverifiable for the Reserve Bank of India or the Securities and Exchange Board of India, said the UPA ally, citing the Tarapore Committee's recommendation for prohibition of fresh investment through Participatory Notes.

Talking about the Politburo deliberations, CPI(M) General Secretary Prakash Karat said the government was allowing FDI in a piecemeal fashion, sector by sector.

"First came FDI in single-brand retail. Now, the commerce minister says good sports shoes are needed because the Commonwealth Games are coming... There is a move to allow FDI in a piecemeal fashion. This is unacceptable. We have conveyed to the government that this is not the correct way," he said.

In the name of wholesale and cash-and-carry operations, companies like Wal-Mart were tying up with Indian companies to enter the retail trade through the back door, said the Left party, calling upon all political parties to take a united stand to stop FDI in retail trade.

The CPI(M) Politburo also expressed concern about the entry of big corporate companies in retail trade because it would have the same effect of displacing petty shops and traders.

The CPI(M) leadership of West Bengal informed the Politburo that the major special economic zone proposals for the state would be finalised after the changes in the SEZ Act and rules are brought about at the central level. "There is no question of forcibly acquiring land at Nandigram," said Karat.

Criticising the government for ignoring its demand for a ban on futures trading in foodgrain and other essential commodities and revision of the tax structure for petroleum products, the CPI(M) said it would conduct picketing and court arrest all over the country against rising prices on February 27.