April market crash not a scam - SEBI chief

NEW DELHI, OCT. 15. The Securities and Exchange Board of India today surprised the Joint Parliamentary Committee by stating that the stock market crash in April this year could not be construed as a `scam'. The SEBI Chairman, Mr. D. R. Mehta, conceded that while there were some cases of irregularity in stock markets and things did go wrong, it could not be termed as a scam. The SEBI chief based his conclusion since the stock markets in the country continued to function and did not close down despite the reversals. In fact, Mr. Mehta, told the JPC that China considered Indian stock markets as a model bourses. Briefing correspondents, the JPC Chairman, Mr. Prakash Mani Tripathi, conveyed his disagreement with the SEBI assessment. He said the JPC was set-up by Parliament which determined that a scam had occurred and the exercise was to look at the systemic failures and suggests steps to prevent its recurrence.