"Many FIIs have approached us demanding permission to park their funds temporarily in the G-sec and Corporate Bond markets given the high volatility in equity markets. The matter may be looked into by the concerned authorities so as to prevent a fight of FII funds from the system," Sebi's Whole time member, T C Nair said in Mumbai.

Peturbed by the high volatility in India's premier stock exchanges, a few FIIs have approached the market regulator with this demand, Nair said.

Presently, FIIs are allowed to park upto USD 8-billion in the domestic debt markets, which includes upto USD 5-billion in the Government securities and upto USD 3-billion in the corporate bonds. FIIs have asked Sebi to temporarily raise the ceiling to USD 10-15 billion as against the present USD 8-billion.

The weakness in Sensex continued today as investors continued to exit positions, primarily owing to the advesre sentiment about a possible spillover of global financial downturn into the domestic system.