Capital and commodity market regulator Securities and Exchange Board of India (SEBI) has relaxed the process for setting the daily price limit by commodity exchanges to align domestic prices with international markets.
In case the price movement in the international markets is more than the aggregate daily price limit or if the international price is beyond the aggregate DPL range (after appropriate currency conversion) when compared with the closing price on the previous day on the domestic exchange, the same may be further relaxed in stages of 3 per cent by the exchange with cooling off period of 15 minutes, said SEBI.
For such instances, the exchanges need to give appropriate notice to the market along with all the relevant details and justification for the same, it said. The relaxation in daily price limit come into force immediately, it said.
Earlier, the exchanges have informed that due to difference in closing price, the aggregate daily price limit range on domestic exchange is lagging behind the international prices in next trading session.
Further, the regulator said in the event of exceptional circumstances, where there is extreme price movement, beyond the initial slab of the DPL, in the international markets, during trading hours or after the closure of trading on domestic exchanges, the stock exchanges can relax the daily price limit directly by the required level, by giving appropriate notice to the market.