Stock crash: Sebi says watching situation
Amid a sharp plunge in the stock market to its lowest level in over a year, the regulator Sebi said it was closely watching the situation which it attributed to global developments and assured the system was well-regulated. "We are closely watching the situation and our belief is that everything is perfect and right in markets," Sebi Chairman U K Sinha told reporters. He was replying to queries related to today's crash in stock market, where benchmark Sens*x plunged by over 700 points or about 4 per cent to slip below 17,000-level for the first time since June 2010. "There is nothing for the people to worry. Our risk management system is working perfectly and all the settlements are taking place," Sinha said, while dismissing any suggestion about any adverse impact of the panic situation among investors. Earlier, concerns have been raised that panic in world markets could lead to a possible flaash-crash or collapse like situation on Indian bourses in the absence of a robust risk management system. "These are matters about how you perceive the markets and the cues that you get from global developements. So, I will like to tell you that our markets and our regulatory system are perfectly on track," he said. Earlier in the day, Economic Affairs Secretary R Gopalan attributed today's fall in markets to panic-like situation among investors due to negative news flow about the US economy. The US markets crashed sharply on Thursday, triggering a sharp plunge in Asian and European markets this morning.
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