Indian settlement system robust: Market regulatorFebruary 25th, 2009 - 5:10 pm ICT by IANS
Mumbai, Feb 25 (IANS) The settlements system in Indian equities markets was robust and has successfully tackled redemption pressures in the past, the markets watchdog said Wednesday.
The pressure mounted after foreign and domestic financial institutions stepped up withdrawals in the wake of the global financial meltdown last year.
“We were faced with huge redemption pressure in October when mutual funds and companies wanted to withdraw from the markets. Whenever there was a request for redemption from a mutual fund, that requirement was met,” said Securities and Exchange Board of India chairman C.B. Bhave at a seminar here.
“There have been instances when the countries around the world had to shut down their stock exchanges or suspend trading,” added Bhave.
However, he also warned against complacency and said that regulators around the world will have to work together to tackle any turmoil in financial markets.
“We cannot just sit back and relax. We need to continuously monitor our systems,” Bhave said.