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Sinha rules out intervention in 'unfortunate' BSE affair; 'SEBI needs a chance to work'

Union Finance Minister Yaswant Sinha today ruled out the question of interfering with the decision of the Securities and Exchange Board of India to dismiss Bombay Stock Exchange president J C Parekh.

''I personally believe that unless it is a very important issue, the government should not interfere with the work of a regulatory body,'' Sinha said after taking part in the 72nd annual general meeting of the Indian Chambers of Commerce in Calcutta.

He said some views had been expressed by concerned people including Sudhir Jalan, president of the Federation of Indian Chambers of Commerce and Industry, about the need for capital market reforms, specially about intervention in the SEBI.

Describing the happenings in the Bombay Stock Exchange as ''very unfortunate'', Sinha said, ''A regulatory body has to be given a chance to work.''

He, however, felt that the SEBI should equip itself in a way which would enable it to prevent such market manipulation from taking place rather than dealing with it after its occurrence.

''Prevention is better than cure,'' the finance minister added.

Earlier, addressing the annual general meeting, Jalan urged Sinha to independently look into the role of the SEBI.

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