New Delhi, Oct 17 (UNI) Blaming the wrong policies of the UPA government for the 'blood bath' in the capital market, the BJP today demanded a Joint Parliamentary Panel probe to unearth who actually benefited from the short selling in the bearish market.
BJP spokesman Prakash Javadekar said yesterday's statement of Securities and Exchange Bureau of India (SEBI) making its intention to regulate the Participatory Notes followed by Finance Minister's very late clarification after the crash had compounded the matters. It also pointed towards the unholy nexus between vested interests and institutions who gained from the volatality at the cost of small investors.
The government had triggered off extreme volatility in the Capital market by making unwarranted utterances causing undue losses of millions to the small investors and the JPC should investigate this nexus and mismanagement and find out who benefited from the short selling during the fall.
He said it was third time in the UPA regime that the market had to be closed down because of the governmental flip flop and the market regulator. The volatality witnessed in the last few sessions was not due to fundamentals but because of excessive speculation.
It is the duty of the government to help small investors, they have only confused this section rattling their confidence.
Mr Javadekar said the NDA government had prepared a blue print to phase out the PN route as it had become a source for pumping in tainted money now worth Rs 3,53,484 crore. The National Security Advisor had spoken of terror outfits investing through the PN route or the corruption money laundered into the country by unscrupulous politicians. The UPA government did not act upon it and the government is virtually blank about the source of the money through the PN route, he said. While an ordinary investor has to provide somany details for entering the market, there has been no explanations whatsoever, about thousands of crores pumped in through the PN route, he alleged.
The sensex which touched an all time high during the last week had crashed very badly losing about 2000 points in the trading since Monday.