AIADMK demands Chidambaram's resignation on P-note issue

CHENNAI: Continuing her tirade against Union Finance Minister P Chidambaram on participatory note issue, AIADMK leader J Jayalalithaa on Thursday demanded his resignation from the Union Cabinet or his dismissal.

In a statement, she said Union Finance Ministry and market regulator SEBI were ineffective in regulating investments coming from abroad.

Claiming that she has proof to back her allegation that the P-notes were being issued to unknown persons, she said SEBI had slapped a fine of Rs One crore in September 2006 on Mauritius company Goldman Sachs Investment for its failure to report the issuance of P-notes to Mauritius based Magnus Capital Corporation, which was a violation.

But Securities Appellate Tribunal set aside the SEBI's order as it felt SEBI was not justified in asking foreign institutional investors (FIIs) and their sub accounts to file undertakings in a revised format.

"The case is not only a loss of face for SEBI, it is also a clear indication that Union Finance Minister's claim that investments from abroad are being adequately monitored is a lie," she said.

"Why should the Union Finance Minister lie on a matter concerning national security? Are we to infer that he has certain vested interests in doing so? Now that his lie has been publically nailed, will he quit office? If he refuses to do so on his own, will the Prime Minister throw him out and direct CBI to investigate what is happening," she asked.