Govt institutions made abnormal purchases on Jan 22: Somaiya

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Mumbai, Feb 20 (UNI) Investors Grievances Forum president Kirit Somaiya has alleged that government institutions had tried to bail out the market on January 22 by making abnormal purchases after the crash.

Talking to reporters here today, Mr Somaiya said institutions like LIC, UTI, and SBI were the major purchasers on January 21 and 22. Out of the Rs 1,900-crore purchases on January 22, these three major institutions, among themselves, had made purchases to the tune of Rs 1,500 crore, Mr Somaiya alleged and asked to know whether this was done on the instructions of the Finance Minister.

Some of the government institutions went out of the way and made 10 times their normal purchase, Mr Somaiya alleged. He expressed concern over the manner in which LIC made equity purchases from the non-linked traditional LIC policy fund.

Average purchase during January from non-linked insurance policy fund was Rs 40 crore against which LIC went out of the way and made purchases of Rs 400 crores on January 21 and 22, he said.

As much as Rs 73,000 crore of small investors in Futures and Option segment were cruelly cut off by SEBI and NSE on January 22, he added while demanding that there should be a transparent and healthy system in the IPO market.


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