Shourie says Govt knows players behing stock crash-blames advisors

New Delhi: Reacting to the poor response to the public sector companies disinvestment offers, Disinvestment Minister Arun Shourie said that the government knows the identity of the people responsible for pulling down stock prices. He fixed the responsibility on financial advisors to motivate and inform the public.

Following a meeting with financial advisors and the chairman of SEBI to discuss the developments. Shourie, told reporters yesterday that he would bring this to the notice of the Prime Minister, the Deputy Prime Minister and the Finance Minister.

"We have identified the people behind it. Some people worked in anticipation that the Government will give a 5-10 per cent discount from the last closing price when it announces the floor price," Mr Shourie said. "I have informed the financial advisors for the six issues for sale of Government equity about these persons," he added without divulging the identity of persons.

"The Government attaches great importance to the success of these issues. They (advisors) are our partners in this and it is their job to motivate and inform the investors," he added.

Despite the setbacks, Shourie said the sale of residual equity in IPCL, CMC and IBP and partial disinvestment in DCI, ONGC and GAIL were on track. "The final offer price of the shares in these companies will not be based on the previous closing price of the scrip and will be determined on the strength of the company and expert advice. The prices will be fixed on a realistic basis. The Government will not go in for distress sale of shares in any of the companies," he said.