The Securities and Exchange Board of India's role in the Global Trust Bank scrip matter came under scrutiny at the market regulator's board meeting in Mumbai on Thursday.
According to a source present at the board meeting, finance ministry nominees asked the regulator to shed light on how some entities, which were previously barred from trading in GTB shares, were allowed to do so.
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The finance ministry's Chief Economic Adviser, Ashok Lahiri, was also present at the meeting.
Sebi officials were not available for comment on the matter. Sebi chairman GN Bajpai did not respond to two e-mails Business Standard sent him in the evening, seeking his comments on the matter. A phone call to his mobile number went to his voicemail box.
Ministry officials also asked Sebi to identify the people buying the scrip now, and are learnt to have directed the stock market watchdog to expedite its investigations into the GTB scrip's movements. A preliminary report is expected to be submitted within the next 15 days.
There have been extraordinary movements in the price of the scrip in the last few weeks and a large number of entities, including some based in Mauritius, sold their holdings. The purchasers have largely been retail investors.
Sebi board members also raised the issue of integrating the commodity markets with the securities market. Sebi is expected to come out with a scheme shortly; the regulator is working on this and on the amendments to Sebi guidelines that may be required.
The Sebi board was informed that the regulator was working on the modalities of collecting the turnover tax. The meeting also discussed the corporatisation and demutualisation of the stock exchanges, which has been hanging fire for some time.