Chairman of Securities and Exchange Board of India (SEBI) U. K. Sinha said that the Indian stock markets were in sound condition on a day when the Bombay Stock Exchange and National Stock Exchange indices dropped considerably following the crash in U.S. markets.
“Our regulatory mechanism and risk management systems are functioning perfectly and there is no need for any worry,” Mr. Sinha said while talking to mediapersons on the sidelines of convocation of the Institute of Insurance and Risk Management (IIRM) here on Friday. The SEBI was closely watching the situation and it did not warrant any panic.
“The market crash today [Friday] could be the result of global developments of which India is a part,” the market regulator said.
Mr. Sinha replied in the negative when asked whether the ‘early warning system' developed by SEBI found any Satyam kind of development. On the norms for IPOs of insurance companies, the SEBI chief said negotiations were still on between the SEBI and the Insurance Regulatory and Development Authority (IRDA) and they were yet to be finalised.
Keywords: sensex crash