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*1 hour 19 min* ago

p align=justifyRuling out the possibility of a corporate raid on ICICI Bank
through hammering down of its share price, Planning Commission Deputy
Chairman Montek Singh Ahluwalia today said it is not possible for justnbsp;
anyone to take over the management due to strong regulations in India.
brbrThere are limits (shares) on what can be bought by an individual.
Ability to change management is also dependent on lots of regulatory
approvals, so I don't think people should have any fear that all of a sudden
ICICI Bank may change management because of stock manipulation, he said in
an interview. brbrOn whether nationalised banks are more capable of handling
market pressures due to backing of the government, he said, It is true that
in public sector banks nobody can change the management because we are not
going to reduce the government ownership below 51 per cent. So the trading
innbsp; stocks only remains up to 49 per cent.nbsp; brbrHe added, In a
private sector bank there is no freeze on majority ownership so stocks would
be traded more freely. Whether that leads to instability or not depends on
market conditions. I don't see that very crucial for the actual stability of
the banking system.nbsp; brbrBoth private and public sector banks are
subjected to same regulation and supervision, he said, adding, when I am
saying that the banking system is strong as judged by the Finance Ministry
and the RBI, that applies to both. As far as the stability of the banks are
concerned, the private sector banks that we are supervising are as
sound.nbsp; brbrICICI Bank management had earlier alleged that vested
interests were indulging in malicious rumours to pull down the bank but
ruled out that any banking rival was behind it.nbsp; brbrPointing out that
the fundamental thing is the stability of the banking system and of ICICI
Bank, Ahluwalia said, if there is any temporary shortage of liquidity, RBI
can make available liquidity since they are quite convinced that the bank
(ICICI) is perfectly sound.nbsp; brbrAs regards the specific complaints of
hammering down of stocks by the ICICI management, he said, the stock price
manipulation is illegal and if somebody has been manipulating the stock it
would be the job of SEBI to look into the matter.nbsp; brbrIf the ICICI has
raised this matter I am sure that the regulators will take a look, he said.
brnbsp;nbsp;nbsp;nbsp; brStating the ICICI Bank chief K V Kamath did the
right thing in complaining, he added, merely by buying the shares of a bank
you don't actually succeed in controlling it. brbrStock markets tend to be
volatile. Though we don't know what causes people to become bearish. If they
are overbearish the market corrects itself, he said referring to volatility
witnessed by ICICI stocks during the last few trading sessions.nbsp;nbsp;
brbr(Agencies)/p


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