Strict surveillance measures to tackle market volatility to continue till June 25: Sebi

Regulator Sebi on Friday said stricter surveillance measures to tackle market volatility amid coronavirus pandemic will continue till June 25.

Besides, ensuring orderly trading and settlement, these steps are aimed at effective risk management, price discovery, and maintenance of market integrity.

The measures, which came into effect from March 23, will continue to be in force till June 25, the Securities and Exchange Board of India (Sebi) said in a statement.

Earlier these steps were in place for a month, subsequently, the?deadline of these measures was extended till May 28 and now it has been further extended.

“As the stock markets (both domestic and global) are expected to be volatile in the near future, keeping in view the objective of ensuring orderly trading and settlement, effective risk management, price discovery and maintenance of market integrity, it has been decided that the measures implemented since March 23, 2020, will continue to be in force till June 25, 2020,” the regulator said.

Sebi had introduced various regulatory measures to deal with market volatility.

These measures included revision in Market Wide Position Limit (MWPL). For stocks in F&O segment meeting certain criteria, Market Wide Position Limit was revised to 50 per cent of the existing levels. The margin for stocks meeting specific criteria would be increased, apart from having revised position limits in equity index derivatives (futures and options).

Dynamic price bands for F&O stocks could 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 said these?regulatory measures were introduced in view of the uncertainty observed in the recent past owing to concerns relating to COVID-19 pandemic and the resultant fear of economic slowdown.