Assuaging the nerve-wrecked stock markets, Sebi, on Wednesday, asked investors not to be carried away by rumours, flying fast and furious, with Chairman M Damodaran saying the proposals on the Offshore Derivative Instruments (ODIs) were a well-designed package.

“Investors should see what period they are investing and remain within their set horizon and not be swayed by any rumours,” Mr Damodaran said.

On the issue of Sebi’s proposal to curb issuance of ODIs by Foreign Institutional Investors, the Sebi chief said: “It is a well-designed package and we have a period of four days to debate on the package.”

FIIs ever welcome
Meanwhile, in a bid to prompt FIIs to invest in the country, Mr Damodaran hasten to state that we are looking at encouraging FII registration... process will be simplified soon.

Stating that the regulator does not take much time in clearing FII applications, he said money routed to India through FIIs is clean and the regulator knows from where it is coming.

Finetune policies
However, in case of PNs, he said though the money comes from limited number of players, it is difficult for the regulator to track. When asked whether Sebi was undertaking a systemic correction, Mr Damodaran said: “Process timings and policies need to be improved” as and when necessary.

On whether Indian money was being re-routed through PNs, he said: “We are keeping vigil and will react with policy measures.”  Finance Minister P Chidambaram, on his part, said inflow of funds, which Sebi aimed at curbing, contributed to steep rise in the markets. “(For) example, markets moved from 18,000 to 19,000 points in four trading sessions, therefore it is in the interest of everyone, be it retail investors, brokers, traders, big investors, that these inflows are moderated,” he added.