ASSOCHAM asks SEBI and RBI to be on high alert

New Delhi, May 22 (UNI) Concerned over the sharpest intra-day crash in the Indian stock market today, ASSOCHAM has called upon the market regulators, SEBI as also RBI, to be on high alert, particularily with regard to the operations of the hedge funds.

''The regulators should also probe whether there is any international bear castel out to destablise our financial system,'' ASSOCHAM President Anil K Agarwal said.

He said while it is true that all the emerging markets are coming under pressure, the decline is the sharpest in the Indian market which could create panic among the retail investors.

Mr Agarwal wondered how the sound economic fundamentals of the Indian economy--sustained GDP growth of 8 per cent, comfortable foreign exchange reserves, over 25 per cent growth in the corporate profits, 100 billion dollar exports-- have changed overnight as to warrant this kind of a strong reaction from the foreign institutional investors (FIIs) and the hedge funds who had all along been swearing by the Indian economy.

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