Action taken report on scam suggests exchange of data among regulators
The finance ministry has asked the Reserve Bank of India (RBI) to issue a red alert as soon as it detects any attempt of deliberate market manipulation and unreasonable inflow or outflow of foreign exchange.
The ministry indicated this in its action taken report on the findings of the joint parliamentary committee (JPC) on the stock market scam of 2001 tabled in Parliament today. It said the red alert would help the Securities and Exchange Board of India (Sebi) to monitor the transactions of foreign institutional investors (FIIs) under their portfolio investment schemes.
More From This Section
According to the action taken report, the finance ministry, in a meeting held in January this year, had stressed purposeful exchange of raw data among the regulators for evolving an effective monitoring system to generate adequate warnings in case of any sign of irregularities in the stock market.
Finance Minister Jaswant Singh assured Parliament that