Former IAS Officer Calls for ED Probe into June 4 Stock Market Crash

EAS Sarma, ex-IAS officer, urges the Enforcement Directorate to investigate the June 4 stock market crash, which saw Rs 31 lakh crore wiped out. Sarma questions market regulator Sebi's actions and demands a coordinated investigation by ED, CBI, and CBDT. He criticizes statements by PM and Home Minister for exacerbating the situation.

Former IAS officer EAS Sarma has called for an Enforcement Directorate (ED) investigation into the stock market crash on June 4, which erased Rs 31 lakh crore from investors' wealth. In a letter to Economic Affairs Secretary Ajay Seth, Sarma questioned whether the market regulator Sebi had taken any actions to stabilize the market or initiated a probe into the dramatic fluctuations on June 3 and 4.

'It is concerning that multiple factors led to a stock market surge on June 3, 2024, followed by a drastic crash the next day, wiping out small investors' savings and benefiting larger players,' said Sarma. He added that the stock market remains shaky even today.

The crash followed speculative statements by the Prime Minister and the Union Home Minister, urging investors to buy stocks, which Sarma termed 'imprudent.' He demanded to know if finance ministry insiders or large investors influenced these statements. He also called for a coordinated investigation by the ED, CBI, and CBDT.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)