The high-level committee on capital markets is scheduled to meet on June 11 to take stock of the turbulence in the domestic stock markets over the past two months.
The meeting of the committee in Mumbai will be significant as the government is keen to find out if there has been a concerted bear hammering.
The government has received indications from the income tax department that there has been an unusual level of activity through the participatory notes route. The revenue department has said the percentage of investment through this route has been over 35 per cent for the past few weeks.
Sebi had earlier reported that PNs accounted for about 20 per cent of the total market turnover.
The inputs from the revenue department as well as Sebi will be considered by the HLCC. The committee is chaired by RBI Governor YV Reddy, and includes Sebi Chairman GN Bajpai, Finance Secretary DC Gupta and Insurance Regulatory Development Authority Chairman CS Rao as its members.
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