Securities and Exchange Board of India has sought intervention of the state governments to curb illegal trading in shares and take action against those involved in such trades.
"This (illegal trades) is an unofficial activity beyond the ambit of market regulator, and "we have written to state chief ministers to deal with it", Sebi chairman G N Bajpai told reporters in Mumbai on Wednesday.
Sebi had communicated information about such trades to the states and the police can take action under Indian penal code, Sebi sources said.
"We have also issued directives to the stock exchanges to ensure no such illegal trading takes place in premises of the bourses", Bajpai said, adding, "we have sent teams to exchanges to check occurrence of such dealing".
Recently, Sebi had superceded the Ahmedabad Stock Exchange Board when it found that illegal trading activity was being conducted in bourse premises, it was pointed out.
On issuing guidelines for initial public offering, he said, "Sebi board has had some discussions on them and guidelines are expected to be in place in a month".
On the working of central listing authority which would vet all fresh offerings, Sebi chairman said commencement of CLA has to be notified in the gazzette.
Bajpai claimed that investors were showing growing interest to participate in equities and said presentation by state-owned Union Bank of India, which floated IPO in last fiscal, showed that 100,040 demat accounts were opened for its issue.
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