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It is too premature to comment on inquiry: JPC

Our Bureau

MUMBAI, July 11

THE Reserve Bank of India (RBI) has not implemented some of the recommendations made by the previous joint parliamentary committee (JPC) looking into 1992 securities scam, the current JPC Chairman, Mr Prakash Mani Tripathi, has said. JPC, probing the rec ent stock market crisis involving broker Ketan Parekh, today met the officials of the RBI and the National Stock Exchange (NSE).

The JPC will meet SEBI, BSE and representatives of brokers/investors association on Thursday.

RBI also said that the five banks, Bank of India (BoI), Global Trust Bank (GTB), Madhavpura Mercantile Cooperative Bank (MMCB), Nedungadi Bank and City Cooperate Bank, which had excessive exposure in lending against shares, have filed necessary complaint s against brokers in this regard.

Addressing mediapersons here today, Mr Tripathi said that though a good amount of the recommendations have been implemented, there were some areas particularly those in areas of judiciary, where some of the recommendations were not implemented.

``Within the constraints of our judiciary system, RBI has done a good job, but more needs to be done,'' said Mr Tripathi. The RBI may even be called as witness later, he added.

Four brokers representing NSE members briefed the committee. ``We have received some inputs from these brokers and they have also made certain suggestions,'' Mr Tripathi said.

He said that there was no evidence of any system failure in NSE, but in case of the Calcutta Stock Exchange, there was evidence of a system failure. ``We will now see, if there was any such failure in the BSE,'' Mr Tripathi said.

He said that so far, neither has there been any specific ideas that have emerged from the inquiry nor have there been any discussion among the members. ``We have not reached that stage, it would be too premature to comment on what view we are likely to t ake,'' said Mr Tripathi.

When questioned if the role of Unit Trust of India (UTI) will be probed, Mr Tripathi said that ``any material required for finding the truth will be taken and UTI's involvement in malpractices, if any, will definitely be investigated.''

The committee was hopeful of submitting its report by the end of the monsoon session but ``since this is a dynamic situation it will become more apparent as to how much time we need. There is, however, the possibility that we may ask for some more time.' '

Picture: Mr Prakash Mani Tripathi (right), Chairman, Joint Parliamentary Committee, and Mr Kirit Somaya, Member of JPC, at press conference in Mumbai on Wednesday.

Picture by Shashi Ashiwal