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Coronavirus impact: SEBI extends measures to curb market volatility, short selling till May 28

Curbs on short selling, a steep increase in margins, a 10-fold increase in penalties, and lowering the outstanding positions available for derivatives trading were a few measures the capital markets regulator had announced on March 20.

twitter-logo BusinessToday.In   New Delhi     Last Updated: April 21, 2020  | 14:33 IST
Coronavirus impact: SEBI extends measures to curb market volatility, short selling till May 28
Securities and Exchange Board of India

The Securities and Exchange Board of India (SEBI) has said that the regulatory measures introduced last month will continue to be in effect until May 28 amid uncertainty in the stock markets owing to coronavirus. The measures were taken by the SEBI to ensure orderly trading and settlement and effective risk management amid coronavirus crisis. "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 May 28, 2020," the SEBI said in a statement released Monday. The markets regulator fears that the stock markets both domestic and global are expected to be volatile in the near future owing to concerns related to novel coronavirus. The stock exchanges and clearing corporations will soon be issuing necessary instructions to the market participants in this regard, the SEBI added.

"SEBI and Market Infrastructure Institutions viz. Stock Exchanges Clearing Corporations and Depositories are continuously monitoring the market developments and will take any further suitable actions as may be required," the statement said.

Curbs on short selling, a steep increase in margins, a 10-fold increase in penalties, and lowering the outstanding positions available for derivatives trading were a few measures the capital markets regulator had announced on March 20.

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