Thursday, September 22 2005 16:25 Hrs (IST) - World Time -

New Delhi: With wide swings in the capital market, the Government and regulators today stepped up vigilance, probing Foreign Institutional Investors (FII) inflows through Mauritius and raiding some stockbrokers in Mumbai and Ahmedabad.

Intelligence Bureau has dispatched two additional directors to Mumbai to investigate whether any manipulation has led to the surge in the market.

The Sensex dropped by over 300 points on intra-day trade today (Sept 22, 2005), after crossing the 8,500-mark on Wednesday.

The IT department swung into action and raided some stock brokers in Mumbai, Ahmedabad and few other places in Gujarat after getting a tip off that funds have been funneled into the Indian capital market through the Mauritius route.

While confirming Central Board of Direct Taxes (CBDT) involvement in the market probe, Revenue Secretary K M Chandrasekhar said, "We have told them to give whatever information is required."

SEBI chairman M Damodaran, now in New York, cautioned investors to take informed decision and not get carried away by hype or day-to-day events.

"Investors must look at whatever information is available and evaluate to facilitate productive investment. They should not be carried away by hype or carried away by day-to-day events," he said in a message to investors.