The Securities and Exchange Board of India vide its press release dated 22nd October 2020 has extended the regulatory measures taken to curb volatility till 26th November 2020.
SEBI in its earlier notification dated 20th March 2020 has issued various measures, including revision of market wide position limit, to ensure orderly trading and settlement to contain high market volatility and imposed curbs on trading in futures and options to curtail frenzied activity that had contributed to a spike in volatility sparked by worries over the relentless spread of coronavirus.
To cut excessive speculation in stock futures and options, Sebi had cut the market wide positions limits (MWPL) in these contracts to 50 percent in a phased manner. A market-wide position limit is the maximum outstanding positions allowed across all stock derivative contracts.
Further, the stock exchanges and clearing corporations will be issuing necessary instructions to market participants in this regard.
