SEBI proposes curbs on derivative-linked share strikes


Securities and Change Board of India, Mumbai. File

The Securities and Change Board of India (SEBI), India’s market regulator, proposes measures to comprise excessive value actions in shares on which futures and choices commerce, together with longer buying and selling suspensions and proscribing value actions.

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SEBI proposed in a session paper late on Might 21 that if a share within the futures and choices section falls or rises by 10% a day, buying and selling can be suspended for an hour, up from the present fifteen minutes, after which allowed to maneuver solely an additional 2%, down from the present 5%.

The proposed restrictions comply with a free fall this 12 months in shares of billionaire Gautam Adani’s group corporations after U.S.- primarily based brief vendor Hindenburg Analysis raised governance considerations in January. The group collectively misplaced greater than $100 billion in market worth quickly after the Hindenburg report was revealed.

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If shares are flagged for extra surveillance and monitoring ought to there be a each day restrict for value strikes, the regulator mentioned.

“From the attitude of market stability, threat administration and defending the curiosity of traders, it’s fascinating to have safeguards towards such excessive value actions, SEBI mentioned.

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