The Government has sought to assure the investing community and other market participants that enough systems are in place to protect the integrity of the capital market.
It has attributed the volatility in stock markets to various global and domestic factors. The authorities have put in place systems and practices to promote a safe, transparent and efficient market and protect market integrity, Mr Namo Narain Meena, Minister of State for Finance said in a written reply to a question in the Lok Sabha.
He said that some of the major factors that may have influenced the market sentiment include oil prices trending up due to tension over Iran, continuing crisis in Euro Zone and apprehension of slowdown in growth rate of China.
Also, acceleration in India's industrial production in January, slowing of headline inflation, hopes of interest rate cut by RBI and injection of fresh liquidity may have influenced the market sentiments, he added.
SEBI on vigil
The Securities and Exchange Board of India (SEBI) maintains constant vigil on the market and in case of any abnormality, takes appropriate action against the concerned entities.
The systems put in place include advance risk management mechanisms, various limits on positions, margin requirements and circuit filters. The system and practices are reviewed continuously and modified to meet emerging needs, Mr Meena said.
SEBI reviews regularly any difficulties/ shortcomings in enforcement of stipulated regulations and necessary amendments are made in respective regulations, he said.
krsrivats@thehindu.co.in