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BJP wants Sebi member to quit

By BS Political Bureau in New Delhi
September 06, 2005 10:08 IST
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The Bharatiya Janata Party has demanded that Madhukar, a wholetime member of the Securities and Exchange Board of India, be asked to resign or at least some action be taken against him for making irresponsible statements about the potential rise of the Sensex.

According to reports, Madhukar had, at a public meeting on August 19, predicted that the Sensex would be clearing the 16,000 mark by the year-end.

The BJP felt that Madhukar's statement not only was misleading for small investors, but was also a violation of the Sebi Act, which made it a regulatory body that was not concerned with the way the index was likely to react.

Seven MPs have already written to Finance Minister P Chidambaram, calling for action against Madhukar. The MPs are, Suresh Waghmare, Vallabhai Kathiria, PS Gadvi, Subhash Deshmukh, Sanjay Dhitre and MK Annasahib Patil.

"This statement will only give false hopes to small investors, while bigger players will make money," said BJP Spokesperson Prakash Javadekar. "This will only fuel speculation in a market which is already in an inflated position, with the finance minister already saying that if the Sensex crosses 8000 points, it will be a matter for worry," added Javadekar.

"It had already been made clear by the episode involving Nalini Chidambaram, that the finance minister does not have control of or knowledge about what goes on in his ministry. This has made it doubly clear," said Javadekar.

Former MP Kirit Somaiya, head of the Maharashtra BJP investors cell, has also written a letter to Sebi Chairman M Damodaran, asking for action to be taken against Madhukar.

The BJP also referred to political appointments in Bihar which, it said, were being made by Governor Buta Singh.

"The appointment made on September 3, the day the election dates in Bihar were announced, is a clear violation of the model code of conduct in the state," said Javadekar.

He added that the National Democratic Alliance would meet Election Commission officials to bring the matter to light.

"We apprehend that free and fair elections may not be possible under the present Governor," he said.

As for the schedule of the elections, which has drawn flak from several political parties, Javadekar said the BJP would have been happy if the elections had taken place in a compact manner.

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BS Political Bureau in New Delhi
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