Markets are being monitored, says RBI

SOME REPORTS have suggested that some scrupulous elements are trying to destabilise the markets to malign the image of the government.

Mumbai, Sept. 23: In a rare move, RBI and Sebi on Sunday said they are “closely monitoring” activities in the markets and ready to take appropriate actions, if required, following a sharp meltdown on Friday in equity and debt markets.

The regulators came out with separate but identical statements amid apprehensions about steep volatility in markets on Monday.

Against the backdrop of debt defaults by diversified IL& FS group, there are also worries about NBFCs even though SBI assured lending support to the NBFC sector.

In a statement, SBI chairman Rajnish Kumar said there was no concern on liquidity of NBFCs in view of their liquid cash position and availability of committed lines.

“The Reserve Bank of India and the Securities and Exchange Board of India are closely monitoring recent developments in financial markets and are ready to take appropriate actions, if necessary,” said the regulators.

Sebi has also sought details from bourses about large trades done on Friday and would be stepping up the vigil to prevent steep volatility, sources said.

On Friday the 30- share BSE Sensex suddenly tanked 1,127.58 points, or 3.03 per cent, to hit a low of 35,993.64 in afternoon trade before staging an equally sharp recovery within minutes.

The markets had opened on a strong note. After an intra- day swing of 1,495.60 points, the Sensex closed at 36,841.60, down 279.62 points.