The Hindu Business Line : Jaswant urges SEBI, RBI to ensure market stability

THE outgoing NDA Government today lent a helping hand to the new Government in dealing with stock market crash with the outgoing Finance Minister, Mr Jaswant Singh, asking the Securities and Exchange Board of India (SEBI) and the Reserve Bank of the India (RBI) to take prompt corrective action to restore sanity in the market.

"I have discussed it with SEBI and RBI. Although I do not have any authority my advice is to be cautious," Mr Jaswant Singh told presspersons after coming out from a meeting with BJP leaders at the Prime Minister's residence. He, however, added that being a caretaker Finance Minister, he did not have "executive or moral authority (to actively intervene in the developments)."

There were rumours during the day that Finance Ministry had asked state run banks and financial institutions, such as LIC and UTI, to support the falling market by buying at lower levels. However, this could not be confirmed. "I cannot confirm or deny these reports," a spokesperson for the Ministry said.

Mr Jaswant Singh also advised the constituents of the new political formation that would be taking charge at the Centre soon to act responsibly while making public statements that could affect market sentiments. "If responsible leaders who aspire to join the Government make statements, it will have an effect on the market sentiments."

Asked whether FIIs could be behind the sustained crash in the market over the past couple of trading sessions, Mr Singh said that he would not draw such conclusions. "I would be extremely cautious in comment on this issue. We have a healthy market and our economic fundamentals continue to remain strong."

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