The board of market regulator, the Securities and Exchange Board of India (Sebi), is expected to meet today in the backdrop of the global financial turbulence. The meeting is expected to take stock of the impact of the turbulence on the Indian capital markets and evolve suitable policy responses.

Here is a transcript of Abhijit Neogy's comments on CNBC-TV18. Also watch the accompanying video.

Sebi will discuss the impact of global financial crisis on India and see how the Indian Capital market can be insulated from the ongoing crisis. Further, there will be a review of short selling; the Sebi chief is in no mood to ban short selling.

A comprehensive review of foreign institutional investor (FII) regulations will also be discussed in the meet. It is believed that although Participatory-Note issue is not on the formal agenda of the meet, it may, however, be discussed.

Further inputs from moneycontrol.com.

Earlier, in October 2007, Sebi had banned fresh issue of P-Notes by FIIs. This was done to check the significant flow of foreign funds into the Indian stock markets. The excess liquidity was difficult for the financial market regulators to handle.

However, with the markets facing a liquidity crunch, Sebi will probably consider lifting the ban that it placed in 2007, sources said.