Centre Will Take Necessary Steps To Curb Insider Trading

New Delhi, Dec 1: | Updated: Dec 2 2003, 05:30am hrs
Finance minister Jaswant Singh has said the government will take all necessary steps, including augmenting human resource and technological powers of Securities and Exchange Board of India (Sebi), to curb insider trading in stock markets.

Mr Singh said this while addressing the Parliamentary Consultative Committee, which met on Monday to discuss the capital market situation. He said the human resources and technological powers of Sebi would be augmented to keep pace with the expansion of its regulatory powers.

Admitting that the volume of trade in the Indian capital market was still thin, the minister said there was a need to add substantial volume to the market.

On corporate governance, he said the issue was not limited only to regulation but to a larger effort to put in place ethical practices. Supporting the need for quarterly disclosure of financial results, Mr Singh said it was part of the global practice and was implemented for the interest of the investors.

The meeting was attended by former finance minister Manmohan Singh, Nawal Kishore Rai, Parmeshwar Kumar Agarwalla, Abani Roy, Ashwani Kumar and Santosh Bagrodia. The members of the committee lauded Sebi for 100 per cent dematerialisation of shares and online trading platform. Expressing satisfaction at the effective regulatory framework, the committee members said these efforts should continue.