CB Bhave, Chairman of the Securities and Exchange Board of India (Sebi) in his address and conversation with CNBC-TV18's Managing Editor, Udayan Mukherjee, at the Hindustan Times Leadership Summit, said that India is closely linked to the world economy and the global credit markets, especially via trade but feels India would be amongst the fastest in the world to recover.
"Every crisis is an opportunity. We have learnt a lot during the month of October. We should use this opportunity to improve our system. When the chips are down, we must build for the future, and not just be unhappy that the chips are down, because this country will recover most probably amongst the fastest in the world. We will feel the effect of what is going on in the world but we will be amongst the first few that recover. When we do recover, our weight in the world will be more than what it was before the crisis."
Bhave is uncertain as to when the markets will bottom out and he advises people not to put all their savings and emergency funds into equity. He said that investors need to diversify asset allocations in order to reduce their losses and advises investors against timing the market.
According to Bhave, the current crisis is an opportunity for us to learn and build institutional capacity. He sees the need to intensify investor education and to focus on institutional reforms to avoid similar crisis.
The Chairman said he has not seen any manipulation in the market so far.
Bhave rues that evidence indicates that leveraged FIIs are getting out of the Indian market and that institutional investors with leveraged clients too are leaving the market. However, he said long-term investors like pension funds were still investing in India.
"Every crisis is an opportunity. We have learnt a lot during the month of October. We should use this opportunity to improve our system. When the chips are down, we must build for the future, and not just be unhappy that the chips are down, because this country will recover most probably amongst the fastest in the world. We will feel the effect of what is going on in the world but we will be amongst the first few that recover. When we do recover, our weight in the world will be more than what it was before the crisis."
Bhave is uncertain as to when the markets will bottom out and he advises people not to put all their savings and emergency funds into equity. He said that investors need to diversify asset allocations in order to reduce their losses and advises investors against timing the market.
According to Bhave, the current crisis is an opportunity for us to learn and build institutional capacity. He sees the need to intensify investor education and to focus on institutional reforms to avoid similar crisis.
The Chairman said he has not seen any manipulation in the market so far.
Bhave rues that evidence indicates that leveraged FIIs are getting out of the Indian market and that institutional investors with leveraged clients too are leaving the market. However, he said long-term investors like pension funds were still investing in India.
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