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PTI Mumbai
Updated: 07-12-2018 13:25 IST

Sebi chairman, Ajay Tyagi, Friday

said despite volatility in markets, the domestic capital

market has performed better than its peers.

He said global capital markets have been quite

volatile in the current year, and is likely to remain so due

uncertain oil prices, move towards more formal monetary

policies by central banks across jurisdictions and US-China

trade dispute.

These factors have also affected the Indian markets. "In

terms of volatility, indices return, Indian markets have not

performed much worse. In fact, they have been better off when

you compare with either major developed economies or emerging

markets," Tyagi said in a speech at CII financial

markets summit.

Citing some data, he said in April-November returns

on Nifty have moved up by about 6.5 per cent. Although

trailing the returns on Dow Jones (8 per cent), it is higher

than stock indices of other countries such as UK (-1 per

cent), China (-18 per cent), Brazil (5.7 per cent) and Japan

(4.5 per cent).

The volatility in Indian equity market at 12 per cent,

in the period, is among the lowest compared to major developed

and emerging markets like UK (12 per cent), US (16 per cent),

China (19 per cent), Japan (17 per cent), South Korea (14 per

cent), Hong Kong (19 per cent) and Brazil (21 per cent).

During April-November, the rupee saw a depreciation of

around 7 per cent against the US dollar, which is around the

same level as the depreciation in the Japanese Yen (-7.3 per

cent) but better than many other jurisdictions like China

(-10.81 per cent), UK (-10.10 per cent), Europe (-8.73 per

cent) and Brazil (-16.85 per cent), he said.

He said on the domestic front, NBFCs and HFCs have

been facing tight liquidity since September, though it has

improved on account of RBI steps to provide

systemic liquidity.

Talking to reporters later, Tyagi said Sebi is also in

consultation with the mutual funds industry for changes post

the liquidity crisis.

"We would gradually take action on that. On any of the

policy issues we are examining, in consultation with the

industry, and will gradually take appropriate action, "

he said.

He also said the capital market has aided the growth

of the country's economy by providing much needed funds to the

corporate sector.

He said a record amount of Rs 8.8 trillion was raised

from the domestic capital market during 2017-18 (through

equity and debt) against the Rs 7.7 trillion raised

during 2016-17. In the current fiscal Rs 4.85 trillion has

already been raised.

Tyagi said the development of other alternative

sources of funding like AIFs, REITs, InvITs and municipal

bonds have also been gradually gaining prominence over time.

He said there has been a spurt in AIF activities in

the past two-three years, with cumulative commitment going up

by 117 per cent from March 2016 to March 2017 and further 96

per cent from March 2017 to March 2018.

For the same periods, the total funds raised have gone

up by 80-108 per cent, respectively, he added.

He said seven InvITs and two REITs have so far been

registered with Sebi, with three of the registered InvITs have

already issued and listed more than Rs 10,000 crore of units.

Recently, one REIT has filed documents with Sebi to

make an offer of more than Rs 5,000 crore of units.

Tyagi said the regulator is in touch with market

participants and if any further changes are warranted relating

to REITs, InvITs, or municipal bonds, appropriate action would

be taken.

"A vibrant capital market has to play an increasingly

pivotal role to facilitate fund mobilisation for sustaining

India's projected economic growth momentum. This role becomes

even more important, given the stress on the banking sector,"

Tyagi said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)