Wednesday, December 22 2004 20:31 Hrs (IST) - World Time -

New Delhi: Finance Minister P Chidambaram today (Dec 22, 2004) said he did not apprehend built up of any bubble in stock markets but said Government was keeping a close watch on the Sensex which has crossed the record 6400 mark.

"I am of the opinion that no bubble is building up in stock markets.... but we are watching Sensex very carefully," he said winding up debate on Supplementary Demands for Grants in the Rajya Sabha.

Chidambaram said the surge in BSE Sensex is driven by increased flow of FII investments.

"If FIIs think India is quite outstanding, it is not bad," he said adding as many as 638 new accounts have been opened by them in the country.

As many 100 new FIIs including the reputed ones like Universal Funds and Calipers have registered in India, he said.

On vanishing companies, Chidambaram said the Government was determined to take action against them.

"Both the Department of Company Affairs and market regulator SEBI will take action against vanishing companies," he said regretting that the previous NDA (National Democratic Alliance) Government had not taken any action against such companies during the last six years.