Putting in place a tighter framework to curb high market volatility, Sebi on Friday announced revising market wide position limit for stocks in the derivatives segment, flexing dynamic price bands and other measures for one month starting from March 23.
The slew of measures comes amidst sharp movement in stocks and continuing volatility in the wake of the coronavirus pandemic that has also adversely impacted economic activities.
The measures would be effective from March 23 and would be in place for one month.
Among other steps, revised positions limits would be applicable in equity index derivatives (F&O) and there would be flexing in dynamic price bands in the F&O (Futures & Options) segment only after a cooling period of 15 minutes after fulfilling certain criteria, Sebi said in a statement. Taking note of the continued abnormally high volatility in the market, Sebi said it discussed with stock exchanges, clearing corporations and depositories appropriate measures that may be taken in the existing circumstances.