CPM wants greater regulation of financial sector

The Communist Party of India (Marxist) called for greater regulation of the economically critical financial sector besides reiterating its opposition to government's stake dilution in nationalised banks. Releasing its manifesto for the upcoming Lok Sabha elections in New Delhi today, the CPM sought restrictions on foreign investment in banks to overcome the ongoing economic slump. The party said this was needed to ensure strong regulation of financial sector, maintain predominant state control over the crucial part of the Indian economy and revive development finance. The CPM said there should be no privatisation of pension funds and no diversion of pension and provident funds to the stock market. It also proposed that the new bank regulation bill should be scrapped.

Its leaders believe that the domestic economic slowdown, sparked by the global financial crisis could see a backlash against foreign firms and lead voters to support more regulation of the financial sector. The CPM also proposed a complete halt to privatisation of profitable public sector companies, a ban on foreign investment in the retail sector, and guidelines to prevent entry of foreign firms into some of the domestic markets. "The CPM will work for the creating of a non-Congress, non-BJP government, which will strengthen democracy, ensure equitable economic development and social justice," the party said in the document. The party is part of the so-called Third Front, which has been formed by 10 smaller regional parties as an alternative to the main national alliances led by the Congress and the BJP.