Congress leader Rahul Gandhi demanded a joint parliamentary committee (JPC) investigation into what he calls the ‘biggest stock market scam’. He questioned the timing of Prime Minister Narendra Modi and Amit Shah’s advice to Indian investors ahead of the Lok Sabha election results.
Addressing a press conference, Gandhi said that for the first time during elections, PM Modi, Home Minister Amit Shah and Finance Minister Nirmala Sitharaman commented on stock markets.
"The PM told the country three-four times that the stock market is going to skyrocket. Home Minister directly said that the stock market will skyrocket on June 4, people should buy. The same message was given by the FM," the Congress leader said.
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Gandhi said that the internal survey of the BJP projected 220 seats for BJP. Intelligence agencies had informed the government that they are expected to win around 200-220 seats in the Lok Sabha elections. The stock markets indeed touched lifetime highs on June 3 but on June 4 the markets suddenly crashed.
Terming it as the biggest scam in the history of Indian stock market, Gandhi said, “Why did the PM and Union Home Minister give specific investment advice to the five crore families investing in the stock market? Is it their job to give investment advice? Why were both interviews given to the same media owned by the same business group which is also under SEBI investigation for manipulating stock?” he said.
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Recording its biggest single-day crash in more than four years, benchmark equity indices Sensex and Nifty tanked nearly 6 per cent on Tuesday as election result trends showed the BJP missing the clear majority mark in the Lok Sabha polls. Losing its sharp gains of over 3 per cent on Monday, the BSE Sensex plunged 4,389.73 points or 5.74 per cent to close at a two-month low of 72,079.05. During the intraday trade, the benchmark fell 6,234.35 points or 8.15 per cent to touch a nearly 5-month low level of 70,234.43. The NSE Nifty50 fell 1,982.45 points or 8.52 cent to 21,281.45 during the day trade. It settled 1,379.40 points or 5.93 per cent down at 21,884.50 on Tuesday. Previously, Sensex and Nifty has fell around 13 per cent on March 23, 2020 when lockdown was imposed due to the Covid-19 pandemic.
Rohini Musa, Advocate on Record, Supreme Court of India said stock markets fluctuate during elections and soars / plummets depending on the outcome. She said, "While it may not have been prudent for the PM to have indirectly furnished market advice, it may also be interpreted as the PM having been upbeat about the results, a positive outcome for his party and therefore, soaring markets."
She added that a JPC is constituted by the approval and consent of both Houses and Gandhi’s request would need to meet the said test. She said, "It might even be open for SEBI to take necessary action if it is opinion that a violation has occurred."
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