No plans to restrict FIIs: SEBI

Seeking to allay fears over the stringent investment regime, Securities and Exchange Board of India on Wednesday said there was no proposal to restrict Foreign Institutional Investors from Indian stock markets and the policy environment would remain conducive for overseas capital inflows.

"There is no reason to panic and foreign institutional investors are welcome to invest here.There is no proposal to put any ceiling or restriction on FII investments," SEBI chairman G N Bajpai said in Mumbai.

The statement by the SEBI chairman comes in the backdrop of views expressed by the Reserve Bank on the nature of FII inflows in the Indian capital market.

RBI Governor Y V Reddy had on Tuesday had expressed concern over volatility in the stock market due to surge in FII inflows in the recent months and had said that a view needed to be taken on the quality and nature of FII investment.