Mumbai (PTI): In the midst of the stock market benchmark Sensex plunging by over 1,000 points before recovering partially, SEBI Chairman C B Bhave on Friday said the regulator has not come across any illegal activity in the market and that it would take "stringent actions", if needed.

"So far there is no evidence of any illegal activity in the market. If there is any illegal activity taking place, we will certainly take stringent actions," Bhave told a private TV channel.

"Wherever complaints have come to us, we have started probe and they are under investigation," he added.

Earlier in the day, Bhave told another TV channel that SEBI was keeping a close watch on the developments and there was no reason to be worried.

"I have confirmation from both of the stock exchanges that they have seen nothing unusual in the market today. We are keeping a close watch on this," Bhave told a private TV channel.

SEBI is also in close touch with the Reserve Bank and the finance ministry. Liquidity was the main issue, the RBI has addressed it, Bhave said.

Bhave said SEBI has communicated on liquidity concerns to the central bank. "The central bank is releasing liquidity in the market. To our mind, this will help. But, we are still keeping a watch on this," he said.

Replying to queries, the regulator said there are only finite number of measures that can be taken. "As you can see the global situation is not very different. There is a limit to what can be done," Bhave noted.