#BandKaroBazaar: Market shutdown is a good option: Anand Rathi Chairman of Anand Rathi Group

It will be difficult for India to unilaterally close its markets, Anand Rathi Chairman of Anand Rathi told Zee Business Managing Editor Anil Singhvi. Anand Rathi was responding to a question if closing markets in current cirumstances would reduce some panic and save investors from losses.

He said that market shutdown can be a good option but it will be difficult situation if the markets in US and other countries remain open while markets back home are closed. He said that if the G7 takes the call or if the US decides so, then it will be easy for India to follow.

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Rathi added that reducing the duration of trading will have no impact on the market as the panic will not reduce.

He said that "margins" need to be looked at to reduce panic as the changes have impacted the markets.

A Friday circular says that there will be minimum 40% margin on delivery based trades from 30 March. On being asked if this will have an impact on the markets will cause a further correction of round 30%, Anand Rathi said it wouldn't happen even in the worst case scenario.

He said the the margins system should be made in a way that it encourages buying and discourages selling at this point in time. He said that there is no point in putting margins on purchase.

Anand Rathi also said that the regulators should issues statements to calm down the nerves of the investors and reduce panic. He also suggested for putting circuit filters on the index and if circuit filter could be put on a day-to-day basis.

He said that the circuit filters in stocks change. To bring some calmness in the markets, the regulators will have to see in which filters could it bring changes. At least some thought should be given in this area, he said.

In a situation like this, individual investors or small investors are the one who bear the brunt.

He also said that the government support is needed.

It was important that the trust in mutual funds remain, he added.

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He advises against any selling because of panic.