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Swamy welcomes move to ban Participatory Notes

CHENNAI: Janata Party President and former Union Commerce Minister, Subramanian Swamy, on Saturday, welcomed the Tarapore Committee's recommendation for banning participatory notes (PNs), a financial instrument used in securities transactions in the stock market.

The recommendation "is in conformity with my demand made last March when the stock market took a nosedive in a rigged sale spree. I had stated then and several times since that PNs are de-stabilising the stock market since these constitute 53 per cent of all FII input in the stock market and are part of the `hot money' in the stock market", Dr. Swamy said in a statement.

Dr. Swamy alleged that PNs were being used by Indian politicians with huge caches of ill-gotten money, "including from Iraq's Oil-for-Food programme, to launder their loot" since there is no requirement for disclosure of ownership.

Foreign "financial adventurers" based in Mauritius were also involved to make a quick profit. Hence the suggestion for a ban was perfectly justified, he said.

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