Hyderabad, Oct 6 (UNI) Communist Party of India (Marxist) National General Secretary Prakash Karat today vehemently opposed the relaxation of Securities and Exchange Board of India (SEBI) norms on indirect investment in shares by Foreign Portfolio Investors and reduction in Cash Reserve Ratio (CRR) by the RBI.
Addressing a press conference here, he said instead of relaxing the norms, the SEBI and RBI should have used more instruments to tighten regulations in the financial markets.
The SEBI move to remove restrictions on issuing participatory notes (P-notes) would only fuel speculation in the share market, he opined.
Those in power had not learnt any lesson from the collapse of the US financial market and were bent upon further liberalising the financial sector, including banking and insurance, he alleged.
Instead of tightening the norms further, the SEBI was giving room for manipulation of the share market by allowing issuance of P-notes by foreign funds registered in India to unregistered overseas investors, he lamented.
In October 2007, SEBI had imposed minor restrictions by banning either fresh issuance or renewal of P-notes by foreign portfolio investors or their sub-accounts, he said, adding, the present move was against the earlier decision.
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