Markets: Govt, regulators step up vigil

With wide swings in the capital market, the government and regulators on Thursday stepped up vigilance, probing FII inflows through Mauritius and raiding some stock brokers in Mumbai and Ahmedabad.

Intelligence Bureau has despatched two additional directors to Mumbai to investigate whether any manipulation has led to the surge in the market.

The Sensex dropped by over 300 points on intra-day trade today, after crossing the 8,500-mark on Wednesday.

The IT department swung into action and raided some stock brokers in Mumbai, Ahmedabad and few other places in Gujarat after getting a tip off that funds have been funnelled into the Indian capital market through the Mauritius route.

While confirming CBDT's involvement in the market probe, revenue secretary K M Chandrasekhar said, "We have told them to give whatever information is required."

SEBI chairman M Damodaran, now in New York, cautioned investors to take informed decision and not get carried away by hype or day-to-day events.

"Investors must look at whatever information is available and evaluate to facilitate productive investment. They should not be carried away by hype or carried away by day-to-day events," he said in a message to investors.