As markets roar, PC puts Rajan, Sinha, other watchdogs on alert
Concerned over the sudden spurt in stock markets ahead of Lok Sabha poll results, Finance Minister P Chidambaram on Tuesday asked Sebi Chairman U K Sinha, RBI Governor Raghuram Rajan and other key regulators to remain alert and take necessary action to curb excessive volatility.
Emerging from a meeting of the Financial Stability and Development Council (FSDC), where the volatility in stock markets figured during discussions, RBI Governor Raghuram Rajan said that the central bank is prepared to deal with any kind of eventuality that may occur over next few days. ‘The regulators have examined the financial system over the 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,’ he added.
Sinha too assured, ‘There is no need for anybody to worry. If we find anybody doing anything wrong, violating any of Sebi’s regulation, we will take prompt action.’ The markets are expected to remain volatile in view of the results of the general elections which will be announced on May 16.
Besides Sebi Chairman Sinha and RBI Governor Rajan, the FSDC meeting was attended by IRDA Chairman T S Vijayan, FMC Chairman Ramesh Abhishek, Finance Secretary Arvind Mayaram and Financial Services Secretary G S Sandhu.