The government said on Friday the Securities and Exchange Board of India is keeping a constant vigil on the market.
The stock exchanges have been advised to initiate expeditious action wherever warranted so as to protect investors' interest and ensure orderly functioning of the stock market, Finance Minister P Chidambaram said.
The Sebi and the government have been advising the investors, whether small or big, they should take informed investment decisions based on their understanding of the market or such advice as they may receive from investment advisors, he said.
Investors should guard against rumours and should not take decisions in panic, he said.
To protect the investors against impact of volatility, the risk management mechanism in the cash market has been strengthened with effect from July 10 on the lines of the practice in the derivatives market.
The applicable value-at-risk margin rates are being updated at least five times in a day and exchanges have been advised to keep enhanced real time vigilance on volatility and deviance, if any, in the market, Chidambaram said.
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