Finance Minister P Chidambaram believes there is no scam in the stock markets and said that there was no cause for worry. He, however, said that investors must exercise caution while venturing into the stock markets at all times.
The finance minister pooh-poohed allegations that there was manipulation in the market, saying that the Indian stock markets were amongst the best regulated in the world and there was no need to worry.
The Indian stock markets which had shot up into the stratosphere fell by an alarming 266 points on Thursday following talk of raids on brokers, greater regulations and probe by authorities.
In an interview with CNBC-TV 18, Chidambaram said: "One has to ask, 'is the market well-regulated? Are P/E ratios in the comfort zone?' And I believe they are."
Chidambaram denied that Prime Minister Manmohan Singh had been in touch with him over the stock market's movements.