Concerned over the poor response to public issues in various companies, particularly IBP, the government on Wednesday said it had identified people responsible for pulling down stock prices and fixed the responsibility of financial advisors to motivate and inform the public.

After a hurriedly called meeting with financial advisors and market regulator Sebi (the Securities and Exchange Board of India) to analyse the situation, Divestment Minister Arun Shourie told reporters he would inform Prime Minister, Deputy Prime Minister and Finance Minister about the developments.

"We have identified the people behind it. Some people worked in anticipation that government will announce a 5-10 per cent discount from the last closing price when it announces the floor price," Shourie said, adding that he had informed the financial advisors for the six issues for sale of government equity about these persons.

The government said it will look into the reasons for poor response to the public issues for sale of its equity in various public sector units.

Denying that there would be any action against these identified elements, Shourie, however, fixed direct responsibility on advisors saying, "Government attaches great importance to the success of these issues. They (advisors) are our partners in this and it is their job to motivate and inform the investors."

Asserting that the six issues, including sale of residual equity in IPCL, CMC and IBP and partial divestment in ONGC and GAIL, would be on track, Shourie said final sale price in these would not be based on the previous closing price of the scrip and would be determined on the strength of the company and advise from experts.

Asked whether the government was confident of mopping up Rs 14,500 crore (Rs 145 billion) from divestment in the current financial year, Shourie said that the financial advisors had expressed confidence in this regard.

"We are studying each and every issue separately. There can be many explanations for this kind of response," Shourie said, but added that the government would not go for 'distress' sale of shares in any of the companies.

Commenting on the behaviour of the stock market, especially in the last few days, Shourie said: "There is a great story to be done. A book to be written on the character of Indian markets."

"We assume as if the small investor is doing something and we try to discover his motives but he is not doing anything. Only a few persons are trying to pull the market down," he said.

Asked if he knew the persons behind these developments, Shourie said: "Hum bekhabar to hain par itne bhi bekhabar nahin (we are ingnorant but not so ignorant about the people)."

"We should see the pattern of the stock market. When it goes down like on February 19. Who did it? Was it during the last hour of the trading? There are too many theories," the minister quipped.

The government is in the process of selling residual equity in CMC, IBP and IPCL and would also offload 20 per cent stake in state owned Dredging Corporation of India besides planning to sell 10 per cent stake each in GAIL and ONGC.

"We expect the market to take cognizance of the situation," Shourie said and hoped that market would ensure the success of all the IPOs.

On the pricing of the shares, Shourie defended 26 per cent discount on shares of Dredging Corporation saying that only a small portion of its equity was on the float so in effect the ensuing issue was like an initial public offer.

Like this on all issues, the prices are being fixed on realistic basis.