Govt, regulators set up vigilance to scan the market

Govt, regulators set up vigilance to scan the market

By agencies   |   Thursday, 22 September 2005, 07:00 Hrs
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NEW DELHI: With the Indian stock market reaching newer heights over the last few days, the government and regulators have stepped up vigilance, probing FII inflows through Mauritius and raiding some stock brokers in Mumbai and Ahmedabad.

The Intelligence Bureau too has sent two additional directors to Mumbai to probe whether any manipulation has led to the surge in the market. The sensitive Sensex dropped by over 300 points on intra-day trade today, after crossing the 8,500-mark on Wednesday.

The Income Tax department acted swiftly and raided some stockbrokers in Mumbai, Ahmedabad and few other places in Gujarat after getting a tip off that funds have been channeled to the Indian capital market through the Mauritius route.

While confirming CBDTs involvement in the market probe, Revenue Secretary K M Chandrasekhar said: "We ave told them to give whatever information is required."

M. Damodaran, SEBI Chairman cautioned investors to take informed decision and not to get carried away by hype or day-to-day events. "Investors must look at whatever information is available and evaluate to facilitate productive investment. They should not be carried away by hype or carried away by day-to-day events," he said.

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