The capital market watchdog, Securities & Exchange Board of India (SEBI) is keeping a close watch on the developments and there is no reason to be worried, said SEBI chairman, C B Bhave, in the middle of stock market benchmark tanking over 1,000 points today (October 10) before some partial recovery.

SEBI is also in close touch with the RBI and the finance ministry and as liquidity was the main issue, the RBI has addressed it, he added.

On queries whether redemption pressure was being faced by mutual funds, he said that SEBI was collecting the data and the general liquidity issue was something that needs to be addressed and the RBI has done it.

Pointing out that there was no payment issues in the markets today, Bhave said that both the exchanges have confirmed that pay in and pay out has gone smoothly.

The regulator said that people would sell or buy the shares depending on their preferences and prices.

On futures market, he said that actions taken by various regulators show that the derivatives market were not touched, it was only in the cash market that some action was taken by them.

There is no shorting by institutions in cash market and so we do not see any worry there, he said.