Mumbai: In the wake of extreme volatility on the bourses, Securities and Exchange Board of India (SEBI) has been on a "high alert" to detect any unusual movement on the stock exchanges and take prompt action against manipulators.

Asked if the Government has asked regulator to probe slump in sensitive index on March 15 and volatile activity, SEBI chairman G N Bajpai today (Mar 17, 2004) said, "The regulator looks at the movements closely on its own and at such times places the market on high alert."

SEBI would take prompt action against market misconduct and penalise those found guilty for breaching market regulations, he told reporters on the sidelines of a seminar on Straight Through Processing (STP) of trades in Mumbai.

S Narayan, Economic Advisor to the Prime Minister, who was present at the function, said SEBI was fully competent to look after the interest of investors.

On March 15, the BSE sensitive index had shed 179.74 points due to heavy selling pressure and consequent erosion in share values.