Indian markets safe, need to be cautious of external risks: Sebi
TNN|
Feb 11, 2018, 12.12 PM IST
New Delhi: Amid concerns over high stock prices, Sebi on Saturday said there was no reason to worry about the safety of Indian markets but cautioned against possible external risks such as those from the US or the impact of high oil prices.
"There are some exogenous factors and there are some endogenous factors. Exogenous factors are due to what's happening in the US for the last 10 days such as hardening of bond yields and there consequences and in terms of hardening of oil prices, which may happen. That is something which everyone has to deal with because it's a globalised (and) connected market... In terms of our provisioning, our risk management, everything is 100% secure. So, there is no issue or cause of worry. Volatility may perhaps continue for some more time (due to the US). But there is no issue on safety or enforcement of contracts (in India)," Sebi chairman Ajay Tyagi told reporters after a board meeting here, which was addressed by finance minister Arun Jaitley.
Although he said that small investors, who were investing in stocks via the mutual fund route, need not panic, Tyagi cautioned that investments were not as riskfree as bank deposits.
Separately, RBI governor Urjit Patel too sought to calm sentiments. "So far, neither globally nor in India, have we felt that this bubble could lead to a very major problem.
Tyagi also said he has written to the government to expedite the recommendations of a panel on crypto-currency. "We want the policies to be framed by the panel," he said.
"There are some exogenous factors and there are some endogenous factors. Exogenous factors are due to what's happening in the US for the last 10 days such as hardening of bond yields and there consequences and in terms of hardening of oil prices, which may happen. That is something which everyone has to deal with because it's a globalised (and) connected market... In terms of our provisioning, our risk management, everything is 100% secure. So, there is no issue or cause of worry. Volatility may perhaps continue for some more time (due to the US). But there is no issue on safety or enforcement of contracts (in India)," Sebi chairman Ajay Tyagi told reporters after a board meeting here, which was addressed by finance minister Arun Jaitley.
Although he said that small investors, who were investing in stocks via the mutual fund route, need not panic, Tyagi cautioned that investments were not as riskfree as bank deposits.
Separately, RBI governor Urjit Patel too sought to calm sentiments. "So far, neither globally nor in India, have we felt that this bubble could lead to a very major problem.
Tyagi also said he has written to the government to expedite the recommendations of a panel on crypto-currency. "We want the policies to be framed by the panel," he said.
(This article was originally published in The Times of India)
