MFs too can come under scrutiny: JPC chairman

New Delhi, May 17: MUTUAL funds such as Unit Trust of India and Morgan Stanley can be examined by the Joint Parliamentary Committee (JPC) probing the stock market scam to determine their scam-related activities even though mutual funds (MFs) are not specifically mentioned as part of the terms of reference of the JPC, its chairman Prakash Mani Tripathi said here on Thursday.

‘‘Though MFs, in general, are not part of the terms of reference of the JPC, however, buying or other functions of any of such companies like Unit Trust of India or Morgan Stanley that impact stock exchange (during scam period) can be inquired into,’’ Mr Tripathi told reporters at the end of the fourth-day of the technical briefing. He said the JPC will not be going to the general functions of the mutual funds but any activities that it (JPC) felt is connected with stock exchanges before or during scam period will be looked into. Mr Tripathi also said the market regulator Securities and Exchanges Board of India (Sebi) told the JPC that it did not have enough powers to regulate.

The JPC will continue its technical briefing on May 29 and 30, before moving on to the second stage of discussions from the second week of June to decide on as to who would be called for examination. Giving details on Thursday’s technical briefing, Mr Tripathi said Sebi, led by its chairman DR Mehta, gave an insight into the role and functions of the regulations and provisions of Companies Act. (PTI)