July 21, 2024


The business lovers

Measures to curb market volatility amid Covid-19 to stay till Aug 27: Sebi

Cash markets regulator Sebi on Tuesday explained stricter surveillance actions to tackle industry volatility amid coronavirus pandemic will keep on until August 27.

On March 20, the regulator had occur out with various actions, which includes revision of industry broad placement limit, to guarantee orderly buying and selling and settlement to contain large industry volatility.

Moreover, making certain orderly buying and selling and settlement, these methods ended up aimed at productive risk administration, value discovery and servicing of industry integrity.

On overview of Covid-19 pandemic associated condition, it has been made the decision that the regulatory actions introduced on March 20, 2020, shall keep on to be in pressure until August 27, 2020, Securities and Exchange Board of India (Sebi) explained in a assertion.

It, even more, explained stock exchanges and clearing organizations will be issuing required instructions to industry members in this regard.

Sebi, in March, had introduced various regulatory actions to deal with industry volatility.

These actions, which came into result from March 23, bundled revision in Current market Extensive Position Restrict (MWPL).

For shares in F&O segment assembly certain criteria, MWPL might be revised to 50 per cent of the current levels, it had explained.

The margin for shares assembly specific criteria was increased, even though placement limits in fairness index derivatives (futures and alternatives) ended up revised.

Dynamic value bands for F&O shares can be flexed only immediately after a cooling-off period of time of 15 minutes from the time of assembly the current criteria specified by stock exchanges for flexing, Sebi had additional.

Increase in margin for non-F&O shares in money industry was also introduced matter to certain ailments.