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Sinha asks RBI, SEBI to arrest slide

Union Finance Minister Yashwant Sinha today said action would be contemplated to stop manipulation in stock prices.

Expressing concern over the wild intra-day fluctuations in the capital market, he asked the Reserve Bank of India and the Securities and Exchange Board of India to take appropriate action to arrest the slide.

He said the government would shortly come out with certain regulations and schemes to protect the interest of small investors.

Asked about the buy back of shares scheme, he said the government cannot allow the facility unless it is incorporated in the amended the Companies Act. ''We are working on this and will make necessary amendments in the Act to allow such facilities to the promoters.''

On the rupee exchange rate policy, he said that the fluctuations in the value of rupee was mainly due to the gap in demand and supply factors.

''We have not taken any decision that discourages the foreign investors and multinational companies to withdraw their investment and funds from the country .''

Speaking about the Budget, the finance minister said he believed that he had presented a 'practical' Budget which could speed up the reform process. ''The mindset of the people is still to change as they cannot accept any new trends,'' he added.

UNI