New Delhi: Concerned over the sudden spurt in stock markets ahead of poll results, Finance Minister P Chidambaram today asked regulators, including Sebi and RBI, to remain alert and take necessary actions to curb excessive volatility.
Sebi Chairman U K Sinha on his part sought to calm the markets saying regulations are in place to curb any excessive volatility and the regulator in keeping a very close watch on stock movements.
Emerging from the meeting of the FSDC, where the volatility in stock markets figured during discussions, RBI Governor Raghuram Rajan said the central bank is prepared to deal with any kind of eventuality that may occur over next few days.
Over last three trading sessions, the BSE benchmark Sensex has rallied over 1,500 points and the NSE's Nifty nearly 450 points. The markets are expected to remain volatile in view of the results of the general elections which will be announced on May 16.
At the meeting Chidambaram, according to a Finance Ministry statement, urged all the regulators to be watchful of developments in the market and large volatility in key parameters.
Chidambaram also called upon the regulators and the Ministry officials "to be in a state of readiness and take necessary action if the situation so warrants".
Sinha said the market regulator is watching the situation very 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," Sinha said.
RBI Chief Rajan too said: "The regulators have examined the financial system over last few weeks. We have conducted a variety of tests. We are in many ways prepared for any kind of volatility that might emerge over the next few days".