JPC on stock scam begins work

NEW DELHI, MAY 14. The Joint Parliamentary Committee (JPC), constituted recently to probe the stock market scam, began its proceedings here today. The first meeting was devoted to working out the modalities of conducting the probe, including the methodology of going into the developments leading to the multi-0000000 scam. The 30-member JPC was given the mandate to investigate irregularities and manipulations, including insider trading relating to shares, rigging of share prices and other financial instruments, in the stock market in all their ramifications. Leading stock broker, Mr. Ketan Parikh, and some others and officials of the Madhavpura Mercantile Cooperative Bank are allegedly involved in the irregularities. The JPC will look to the role of banks, brokers and promoters, stock exchange authorities, financial institutions, corporate entities and regulatory authorities and fix responsibility of the persons involved. It has been asked to look into the adequacies of the control and supervisory mechanism and see if there was any misuse or failure. It is also likely to make recommendations for safeguards and improvements in the system to prevent recurrences of such failure in future. The report is expected in August before the conclusion of the monsoon session of Parliament. During the probe, the role and powers of regulators such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) and the working of capital markets are likely to discussed in depth. At the first meeting, the JPC, headed by Mr. Prakash Mani Tripathi (BJP), is understood to have decided to hold regular meetings till Friday after which the members would go for on the spot investigations in Mumbai, Kolkata and other places, if necessary. Officials of the Union Finance Ministry, RBI and SEBI would also apprise the panel about the technicalities involved in the working of capital markets and the banking system and provide them other relevant information. This is the second JPC to look into a stock market scam, the first having been set up in 1992 to probe the scam that was initiated by the stock broker, Mr. Harshad Mehta.