Markets are safe, says Sebi

Stock market regulator Securities and Exchange Board of India (Sebi) has reiterated that the Indian stock markets are safe for investors, ev...

Stock market regulator Securities and Exchange Board of India (Sebi) has reiterated that the Indian stock markets are safe for investors, even as the markets recovered on Tuesday.

‘‘It is reaffirmed that there are no issues connected with settlement at all and it will go through smoothly and the risk management measures are robust and healthy, as testified by the events of the last couple of days. The investors are reassured that the market is safe and efficacious,’’ Sebi chief G. N .Bajpai said after a surveillance meeting during the day with the exchanges, depositories and senior Sebi officials.

Bajpai, who was in Jordan to attend a meeting of global stock market regulators rushed back home after the Sensex crashed by 11.1 per cent on Monday.

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The meeting took a comprehensive and incisive review of the settlement, risk management and the market trends. ‘‘SEBI is keeping continuous watch on the market and the movements and will be taking appropriate measures as warranted by the situation,’’ Bajpai said.

‘‘Analysis of relevant data, is being done continuously by SEBI and any person/entity, found to be even trying to break the rules or indulge in misconduct/ misdemeanour, will be dealt with very severely and appropriately notwithstanding the size and shade of the entity,’’ it said. Sebi, which is already probing last week’s market crash,has sought trade data from major stock exchanges.

Even as the Sebi reassured investors, stocks which took a severe beating on Monday regained part of the losses. Banking sector stocks were in limelight following across the board buying from all the sections of the market. Buying was triggered following no negative news from the monetary policy and also on the back of bottom fishing, as the recent fall made them attractive on good dividend yield play.

As a result, the banking sector index (BANKEX), recorded the biggest gain among all other sectoral indices on the BSE. The BANKEX ended with a gain of 12.13 per cent or 276.99 points to settle the day at 2,561.08 points from its Monday’s close of 2,284.09 points.