A day after finance minister P Chidambaram?s reassurance that the government has no plan to ban participatory notes (PNs), the CPI (M) on Friday reiterated its demand for the prohibition of PNs in the backdrop of the volatility on the capital market.
The politburo of the party, in a statement, has also advised the government to heed to the recommendations of Reserve Bank of India and the Tarapore Committee on the issue.
?The RBI had also recommended phasing out PNs, through which unregistered entities are pushing huge funds into the capital markets and engaging in speculative activities. The finance ministry has been ignoring such advice,? the politburo alleged.