There146;s no payment problem: Sebi

Market regulator Securities and Exchange Board of India Sebi does not envisage any payment problem on the bourses following drastic erosio...

Market regulator Securities and Exchange Board of India Sebi does not envisage any payment problem on the bourses following drastic erosion in share prices as well as benchmark indices. In fact, the regulator is of the view that the markets will stabilise depending on the next development on the political front.

8216;8216;We do not envisage any payment crisis at the bourses as the risk management system is robust and there is no case for concern whatsoever. In fact, the National Stock Exchange NSE has collected margins to the tune of Rs 360-370 crore on Monday, the day when markets witnessed the sharp fall,8217;8217; AK Batra, whole-time member, Sebi, told reporters after series of meetings with officials of the stock exchanges SEs and representatives of the finance ministry.

Batra said the payment for settlements of last week went on smoothly and 8216;8216;we do not expect any problem for today8217;s settlement also8217;8217;.

Sebi said a free fall in the stock market indices was driven by sentiments and they are expected to stabilise over the next few trading sessions.

8216;8216;The sentiment played an important role in the steep fall in the indices and there in no need to turn alarmist,8217;8217; Batra said. 8216;8216;The market regulator was concerned with the integrity of market, safety and interest of investors, and in case we find instance of market abuse, the regulator will take strong action,8217;8217; Batra said.

He ruled out a full-fledged inquiry into the volatile markets stating that an analysis of data available as of now does not warrant such a step. Based on the developments formation of a new government, the markets are expected to stabilise, he added. The fundamentals of the Indian economy are strong and nothing has taken place to alter the view about its strengths, he added.

National Stock Exchange managing director Ravi Narain said there are no issues over payments and the exchange has actually collected Rs 360-370 crore in the form of trade margins even on a volatile trading day.

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Sebi Chairman G N Bajpai could not be contacted as he has gone out of country.

On Friday, the market regulator had asked the National Stock Exchange NSE and the Bombay Stock Exchange to submit trading data for analysis and examination. The decision to this effect was taken at a special surveillance meeting convened by Sebi after Friday8217;s crash.