Union Finance Minister Jaswant Singh on Monday said the government has asked Securities and Exchange Board of India to study the trading pattern in public sector bank scrips and urgently submit a report.
"I am disappointed with what has happened with banking stocks and have already asked SEBI chairman G N Bajpai to look into it and urgently report," Singh said addressing the India's Best Managed Company Awards function organised by Business Today and A T Kearney.
He, however, did not elaborate on the timeframe given to the market regulator for submission of the report.
Scrips of PSU banks have been witnessing volatility in the last few days, especially in those stocks where banks have announced their plans to return equity to the government.
Asked about the pricing and related issues of public sector bank stocks, Singh said he would not like to comment till the government gets the report.
On the experience of investors with capital markets, the minister said, "It is a sad reality that between 1990 to 2003, we have seen fractures in investors' confidence."
"The markets are thin with limited investors presence and in fact in rural areas, those trading in stocks are looked upon as satorias (gamblers)," he said. "We have to collectively work to correct the impression about stock markets."
"We need a dynamic stock market as an investment avenue and to raise resources," he said.
India being a late entrant to the concept of corporate with a limited liability, it has to learn to deal with the capital market trading aspects, he added.
The minister said corporates and its managers have a responsibility towards shareholders and the company should endeavour to produce more and multiply profits.
Later, he presented the Business Today India's Best Managed Company Award to Reliance Industries Ltd.
A total of 16 entities were in the fray for the award.
