New Delhi: Amid global financial meltdown, market regulator Sebi today assured the investors that there is no need to panic and said that stringent action would be taken against those found violating the short-selling regulations.
“There is no panic in Indian market and we are monitoring the situation closely,” said Sebi Chairman C B Bhave who met Finance Minister P Chidambaram amid fears that US financial breakdown could have an adverse bearing on markets at home.
Within minutes of Bhave’s statement, the stock markets recovered early losses as the Bombay Stock Exchange Sensex was ruling at 12,397, down by 197 points.
Indian market is resilient and the clearing system has proved to its ability to deal with stock market fluctuation Bhave said, adding that clearing and settlement mechanism of the stock exchange is a time-tested mechanism, “which has been tested in the times of great volatility”.
“Yesterday’s settlement went through smoothly and it is expected that the settlement tomorrow also will be smooth,” he added.
Expressing confidence that rules of short selling have not been violated, Bhave said: “No apprehensions that institutions are short selling.... There are no indications that any body has violated the rules. Our stock markets have seen more volatility. We don’t expect any problem now.”
Following rejection of the $700 billion bailout package, Asian markets including Tokyo’s Nikkei, Hong Kong’s Hang Seng and Singapore’s Straits Times were all in the red.