Security and Exchange Board of India is closely watching the market conditions and would soon announce fresh steps for the stability of the stock market. It may restrict over-leveraged hedge funds to ensure smooth running of the stock market. SEBI chief, C B Bhave, who was speaking at the HT Leadership Summit expressed his views that Indian Stock markets will be among the first few to recover.

Bhave said that investing borrowed money in the market is a very dangerous and it should be avoided at any cost. SEBI would try to stop it as it is not in the interest of the economy or the investors. The current global financial crisis is mainly due to the leveraged FIIs like hedge funds in the stock markets.

Investors must understand the volatile nature of the market, where no one can buy or sell at low and high prices respectively. They should avoid market participation with the borrowed money and learn a lesson from the collapse of financial system in the western economies.

He asked people not to invest all their savings in equity markets and to keep sufficient money for medical emergencies and loan repayments. He said that the Indian economy has strong fundamentals and there is no need to worry about anything. India would emerge as a leading economy after the revival of the market.