New Delhi: Amid an unprecedented fall in the stock market, Finance Minister P Chidambaram asked investors not to panic and stay invested in the market.
He said that the system was in place and assured that government would provide all assistance to overcome liquidity problem.
Finance Ministry, market regulator-SEBI, Reserve Bank and Bombay Stock Exchange authorities were virtually on hotline to assess the situation and minimise the damage.
"There was certain nervousness in the market. My message to retail investors is to stay invested. FIIs are here to stay. There is no reason to panic as banks will provide money to those who want to provide margin calls," said Chidambaram., after a crash of over 1,100 points in the market.
"The system is in place and whatever has to be done has been done. My information is that brokers operating on proprietary accounts were under margin pressure, so they were selling," he added.
On the recent IPO scam, he said that the Ministry, which is also probing the IPO scam along-with market regulator SEBI, is likely to complete investigations in a month.
"While SEBI is looking at from its own parameters, we are just probing whether the funds raised for a particular purpose were diverted for any other purpose," he said.
The recovery follows strong statements and appeals by Finance Minister P Chidambaram and market regulator M Damodaram that there was no cause for panic and there was no liquidity crisis.
Reacting on the stock market crash, Minister of Company Affairs Prem Chand Gupta sought to soothe sentiments, saying there was no cause for panic.
"Economic indicators are strong and ups and downs are parts of any system. There is no reason to panic," he said.
He, however, advised retail investors to invest carefully.
The BSE benchmark Sensex, which had crashed by more than 1100 points - the sharpest ever fall, recovered about 700 points within minutes of resuming trading and crossed the 10,000 mark.
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