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A security official checks the temperature of a visitor as a precaution against the new coronavirus at the Bombay Stock Exchange (BSE) building in Mumbai. (AP)
A security official checks the temperature of a visitor as a precaution against the new coronavirus at the Bombay Stock Exchange (BSE) building in Mumbai. (AP)

Sebi, exchanges clarify markets to function normally on Monday

  • The markets are braced for an eventful trade day on Monday as the volatile stocks about 1--12% stocks are likely to enter into a futures and options ban period
  • This clarification came amidst a partial lockdown in the financial capital and a curb on bus and train services

MUMBAI : The Securities and Exchange Board of India (Sebi) and exchanges on Sunday evening clarified that the markets would function normally on Monday.

This clarification came amidst a partial lockdown in the financial capital and a curb on bus and train services. These curbs gave rise to apprehensions whether the trading in markets would be affected. The partial lockdown will not affect essential services. Stock exchanges, depositories, bank officials have been exempted from the office shut down diktat of the Maharashtra government.

Maharashtra government has ordered for shut down of offices till 31 March to contain the spread of COVID-19. Many fear that India may soon reach level 3 or community spread.

In a statement NSE and BSE clarified that all the segments of exchanges would continue to work normally on Monday. A Sebi spokesperson confirmed the developments.

The exchanges and regulators have so far been working with about 20% workforce which includes majorly the senior officials. This is to ensure that the markets continue to work smoothly and the key functions of surveillance are not compromised in volatile market conditions.

The regulator on Friday in a bid to curb volatility imposed curbs on short selling and sharply increased margins for both cash and derivatives segments.

Short-selling can now be used for hedging purposes upto 500 crore for index futures. Short selling beyond that not backed by stocks will not be permitted.

The margins for volatile stocks will be increased to 40% by the end of the month in a phased manner. The markets are braced for an eventful trade day on Monday as the volatile stocks about 11-12% stocks are likely to enter into a futures and options ban period.

Stocks such as NCC Ltd, Punjab National Bank, Adani Enterprises, Jindal Steel and Power, Canara Bank among others are likely to be impacted.

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