Measures to contain high volatility in market to be in force till July 30: SEBI

PTI New Delhi | Updated on June 18, 2020

The Securities and Exchange Board of India (SEBI) on Thursday said the measures announced by it in March to contain volatility in securities market would continue to be in force till July 30.

On March 20, the regulator had come out with various measures, including revision of market wide position limit, to ensure orderly trading and settlement to contain high market volatility.

“On review of the Covid-19 pandemic related situation, it has been decided that the regulatory measures introduced vide Sebi press release dated March 20, 2020, shall continue to be in force till July 30, 2020,” the markets watchdog said in a press release issued on Thursday.

The regulator had revised Market Wide Position Limit (MWPL) in March.

For stocks in F&O segment meeting certain criteria, MWPL might be revised to 50 per cent of the existing levels, it had said.

The margin for stocks meeting specific criteria was increased, while position limits in equity index derivatives (futures and options) were revised.

Dynamic price bands for F&O stocks can be flexed only after a cooling-off period of 15 minutes from the time of meeting the existing criteria specified by stock exchanges for flexing, SEBI had added.

Increase in margin for non-F&O stocks in cash market was also announced subject to certain conditions.

Published on June 18, 2020

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