Sinha, Rajan ready to handle market swings
RBI and SEBI chiefs assured that they are keeping a very close watch on the markets
New Delhi: With equity and currency markets showing volatility before poll results, finance minister P. Chidambaram on Tuesday asked regulators including RBI and SEBI to be on the guard and take necessary action if the situation so warrants.
RBI and SEBI chiefs assured that they are keeping a very close watch on the markets and are ready to deal with any situation.
During the tenth meeting of the Financial Stability and Development Council (FSDC), Mr Chidambaram urged all the regulators to be watchful of developments in the market and large volatility in key parameters. He also called upon the regulators and finance ministry to be in a state of readiness and take necessary action if the situation so warrants.
Sebi chairman U. K. Sinha said the market regulator is watching the situation carefully and all the systems are in place. “There is no need for anybody to worry. If we find that anybody is doing anything wrong, is in violation of any of Sebi's regulation, we will take prompt action,” Mr Sinha said.
RBI governor Raghuram Rajan said that the regulators have examined the financial system over last few weeks. “We have conducted a variety of tests. We are prepared for any kind of volatility that might emerge over the next few days,” added Mr Rajan.