The government on Monday said that the capital market regulator, the Securities and Exchange Board of India, is enquiring the sharp fall in share prices a week ago that had wiped off more than Rs 100,000 crore (Rs 1 trillion) of shareholders' wealth.

"G N Bajpai had said that last week that Sebi was looking into it. It will continue to do so," Finance Minister P Chidambaram told reporters after assuming office.

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Soon after the Lok Sabha poll results were out, stock markets fell sharply as investors feared a reversal of reform and divestment process during the regime of the new Congress-led government.

On May 18, the BSE Sensex crashed by over 842 points intra-day, but closed 565 points lower, the second biggest fall in a day in the history of Indian capital markets.

Trading had to be suspended twice on that day as investors offloaded stocks in panic.

Government asked the Sebi to look into the matter to find out whether there was any case of market manipulation by a section of investors.

The markets, however, propped up after the new United Progressive Alliance appointed Manmohan Singh as the prime minister and P Chidambaram as the finance minister.