The Securities and Exchange Board of India has issued show-cause notices to four entities in connection with the market crash on May 17, when the stock markets posted their steepest intra-day fall.
On the sidelines of a function at the Bombay Stock Exchange, Finance Minister P Chidambaram said: "Action has been initiated against these four entities."
He also said further investigations were continuing and strict action would be taken against those found guilty of manipulating the markets.
But Sebi chairman GN Bajpai refused to divulge the names of the entities. "It is not my practise to disclose names until the final order is passed," he said.
Meanwhile, Bajpai and the Sebi brass were closeted with Chidambaram at the regulator's headquarters for nearly an hour after the BSE function. Sources said the minister had asked for details on market behaviour, the progress on demutualisation and its implementation schedule.
Interestingly, Chidambaram and Bajpai could not agree on their assessment of the recent movements in the market.
Bajpai, when asked about his reaction to the fall in the markets in the last two days said, "During the last two days, the movements have been unusual. We have asked for the data."
Reacting to the same question a little later, Chidambaram said the markets would go up and down and there was no cause for concern as long as the movements were orderly. He said there was nothing unusual in the movements in the last few days.
When confronted with what Bajpai had said earlier, Chidambaram said, "I do not necessarily have to agree or disagree with what he says."
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