'Terrorists manipulating stock markets'

Viewing the recent fluctuations in the Sensex with concern, BJP suspects that some anti-national elements, including terrorists, may be manipulating the stock markets and wants a probe to ascertain the antecedents of investors.

Party President Rajnath Singh said his concern stems from the fact that up to 40 per cent of investments in the stock markets were by the Foreign Institutional Investors (FIIs) through PN (Participatory Notes) system.

"What kind of money, whose money, what colour is it? There is no information," Singh told PTI in an interview while referring to the recent crash in the stock market leading to losses worth crores of rupees to small investors.

"This has been happening for several years. There should be some system to identify whose money is being invested," he said, favouring a "tough law" to monitor these investments.

His views echo the apprehensions expressed by National Security Advisor M K Narayanan about a year ago that terrorists might be pumping money with a design to manipulate the stock markets.

Senior BJP leader L K Advani had also last week noted that there can be no place for "manipulation, malpractices and misuse" of the system by any of the players of the capital market and demanded that offenders must be punished.