With markets tanking on the recommendations of the Supreme Court-appointed SIT on black money last week that SEBI should tighten norms related to Participatory Notes (P-Notes) investments into India, Finance Minister Arun Jaitley cited the government will study the suggestions before taking a stand.

"It is too early to say what view the government would take. But the it will certainly not take any such action in a knee-jerk reaction, particularly one which has any adverse impact on investment environment," he told reporters in his Parliament House Office.

"No such step would be taken which could adversely impact investment sentiment in the country," Jaitley added. He cited "The suggestions and recommendations made by the SIT on black money will come up to the government and the government will apply its mind in due course keeping in mind the investment environment of the country as also the objective behind the SIT recommendations and then take a final view on the matter."

The benchmark BSE Sensex tanked 383 points or 1.36 percent to 27,728.88 in noon trade while rupee fell to 64.03 against the US dollar in late morning deals. The SIT had suggested that the Securities and Exchange Board of India (SEBI) to put in place regulations to help identify individuals holding participatory notes or offshore derivative instruments (ODIs), and take other steps required to curb black money and tax evasion through the stock market route.

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