Mumbai: Securities and Exchange Board of India (SEBI) today (May 17, 2004) said it is closely watching market developments, including the huge crash on the bourses.

BSE and NSE had suspended trading according to the guidelines to contain "volatility", a senior SEBI official said, adding, "The market has been placed on high alert and we are closely monitoring the developments, including the sharp drop in markets."

Asked about suspension of trading by stock exchanges, he said, "They have taken this decision based on the guidelines where circuit breakers are in place to manage volatility."

Meanwhile, SEBI chairman G N Bajpai is out of country on official engagements.