(a) whether a major crash took place in the stock market
recently;
(b) if so, the reasons therefor; and
(c) the steps taken by the Government/ Security and Exchange Board of India/ Reserve Bank of India in this regard?
(a) whether a major crash took place in the stock market
recently;
(b) if so, the reasons therefor; and
(c) the steps taken by the Government/ Security and Exchange Board of India/ Reserve Bank of India in this regard?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE
(SHRI PAWAN KUMAR BANSAL)
(a) to (c): No, Sir. The monthly average of Sensex has been 13984,
14143 and 12851 during January, February and March, 2007
respectively. The movement of market indices or price of a
specific share is a function of perceptions of the investors
– domestic and overseas, retail and institutional – about the
economy, the sector and the company. This perception is influenced
by many factors including macro-economic environment, growth
potential of the economy, corporate performance, domestic and
international events, and market sentiments. The Government,
Securities and Exchange Board of India and Exchanges have put
in systems and practices to promote a safe, transparent and
efficient market and to protect market integrity. The systems
include advanced risk management mechanism comprising on-line
monitoring and surveillance, various limits on positions, margin
requirements, circuit filters, etc. which reduce possibility of
crash in market.