Sebi asks investors not to be swayed by rumours

Sebi asks investors not to be swayed by rumours

Mumbai: Assuaging the panic-stricken stock market, Sebi asked investors on 17 October not to get carried away by rumour.

“Investors should see what period they are investing and remain within their set horizon... not be swayed by rumours", Sebi chairman M Damodaran said here reacting to the crash within minutes of the opening of the market, which cut its losses after assurances from Finance Minister P Chidambaram the government was not against Participatory Notes (PNs).

On the issue of Sebi’s proposal to curb issuance of ODIs by Foreign Institutional Investors, Damodaran said: “It is a well designed package and we have a period of four days to debate on the package."

The proposals as part of a discussion paper, seeking comments from the public by 20 October, triggered a more than 1,700 point crash in the market today, prompting suspension of trade for an hour.

However, the losses were made up by more than half shortly after trading resumed.

Meanwhile, in a bid to prompt FIIs to invest in the country, Damodaran said: “We are looking at encouraging FII registration... process will be simplified soon."

Stating that Sebi does not take much time in clearing FII applications, he said money routed through FIIs is clean and the regulator knows where it is coming from.