The Securities and Exchange Board of India in its press release dated 18th June 2020 has decided to extend the measures to contain volatility in the securities market till 30th July. SEBI had introduced these norms in light of the rising volatility in the market amid the Covid-19 pandemic in March.
SEBI had increased the margins in the cash segment while tightening the norms for position limits in the derivatives market as volatility continued to rise in the stock market on account of the pandemic and it has hiked the margins by 50% for futures and options (F&O) stocks whose price movement was equal to or more than 15% as well as for stocks with a market-wide position limit (MWPL) utilization percentage of more than 40%
Further SEBI had introduced a cooling period of 15 minutes for stocks that hit a certain price band in derivatives before releasing it.
Click here to read the press release.
