Amid a sharp plunge in the stock market to its lowest level in over a year, the regulator SEBI on Friday said it is closely watching the situation and assured that regulatory systems are in perfect condition."We are closely watching the situation. And our belief is that everything is perfect and right in our market. There is nothing for the people to worry," SEBI Chairman U K Sinha told reporters on the sidelines of a function by the Institute of Insurance and Risk Management.
"Our risk management system is working perfectly. All the settlements are taking place," the Securities and Exchange Board of India chief added.
Sinha said the market volatility is due to global developments and has affected the Indian markets as the country is also part of the international system.
He was replying to queries related to today's crash in stock market, where benchmark Sensex plunged by over 700 points or about 4 per cent to slip below 17,000-level for the first time since June 2010.
The markets recovered later.
The sharp plunge in Indian bourses followed a meltdown in the US market amid concerns that the American economy might slip into recession.
Negative trends in Asian and European markets further added to the selling pressure on Indian bourses.
Asked how long the present trend is likely to continue, Sinha said: "I cannot make any forward looking statement. But our analysis at this stage is that global markets have also got affected. And India is part of the globalised economy. But the market infrastructure is completely intact and settlements are talking place".
