The Hindu Business Line : Increased volatility in market — BSE tells members to monitor dealings

THE Bombay Stock Exchange (BSE) today cautioned its members to be vigilant about activities of their sub-brokers and clients and monitor dealings closely due to increased volatility in the stock market.

"Members are advised to be vigilant about the activities of their sub-brokers and clients and monitor their dealings closely, including co-relation of their trading activity with the financial and other information provided by them," the BSE Chief Operating Officer, Mr Rajnikant Patel, said in a statement.

The exchange has also asked its members to put in place appropriate systems and procedures for monitoring and alert it in case any unusual activity comes to notice, he said, adding that it was essential for members to exercise caution in executing orders on their own behalf and that of the clients.

Mr Patel said members should also advise their clients and investors to exercise necessary caution in their dealings and not get carried away by unfounded rumours and tips.

The increased activity both in terms of volatility and volumes may be due to various underlying factors, he said.

FIIs' record inflow

Meanwhile, FIIs seem to be bullish on the Indian equity market, as they have put record Rs 600 crore in a single day.

According to the data available with the Securities and Exchange Board of India, FIIs' net investment was Rs 612 crore on December 10. This is the highest net investment in a single day. The previous record investment was Rs 598 crore on November 5 of this year.

Brokers said the increased inflow, despite the year ending, is due to attractive valuation for Indian equities compared to other emerging markets.

FIIs have already put in Rs 31,748 crore in India so far this year and this investment is one-third of the total investment of Rs 90,672 crore since they started investing in India in 1993.

Brokers said the increased inflow is mainly from the new FIIs that have started looking at India recently. Their investment has been mainly in the index stocks. Several FIIs have also started investing in several mid-cap companies.

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