Witnesses in stock scam to be examined in July

By Our Special Correspondent

NEW DELHI, JUNE 15. The Joint Parliamentary Committee, probing the recent stock market crash, will summon stock exchange officials later this month and follow it up with examination of witnesses, including officials of the RBI and the UTI, in July.

The JPC concluded its four-day session today with a press briefing by two independent experts who gave their impression on the recent scam and the manner in which the stock markets and capital markets operate.

The JPC chairman, Mr. Shri Prakash Mani Tripathi, said the Committee, at its next meeting between June 25 and 28, would call stock exchange officials for investigation, and experts, including the former Chairman of the Disinvestment Commission, Mr. G. V. Ramakrishna, and Mr. Ghanshyam Das, Indian representative of Nasdaq, for consultations.

Mr. Tripathi said the independent experts - the economist, Mr. L. C. Gupta, and Dr. A. K. De - had made their observations on the badla system which they felt had not been properly used. While a ban on badla had resulted in slowdown in trading, it reduced the volatility of the market.

Dr. De, who was called to brief the JPC on the functioning of the Calcutta Stock Exchange, said the regulators were not as alert as they should have been despite the knowledge that the traders were taking positions that could be harmful.

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