We feel that SEBI is doing its duty. However, the impact on the capital market will be knee jerk and in the long term these measures will be helpful for the healthy growth of the capital market. Why have Mutual Funds been constantly liquidating their holdings as against a strong forward movement by FIIs. With the fall in the prices of Mutual Funds, heavy redemption is used to pay the investors, which is why mutual funds are bound to sell their stocks. On the other hand, there's no such compulsion for FIIs and they are encashing their opportunity created by low prices in the capital market.
Operators are an essential and integral part of any movement in the market.
I would like to advice the small investor that the capital market is too volatile and it's advisable to diversify your portfolios. I suggest that you invest a part of your capital actively in the stock market and partly through mutual funds.