{"id":216434,"date":"2020-03-21T12:46:49","date_gmt":"2020-03-21T12:46:49","guid":{"rendered":"http:\/\/151.106.38.4\/2020\/03\/21\/sebi-introduces-new-norms-to-cub-volatility\/"},"modified":"2020-03-21T12:46:49","modified_gmt":"2020-03-21T12:46:49","slug":"sebi-introduces-new-norms-to-cub-volatility","status":"publish","type":"post","link":"https:\/\/nagalandpost.net\/index.php\/2020\/03\/21\/sebi-introduces-new-norms-to-cub-volatility\/","title":{"rendered":"Sebi introduces new norms to cub volatility"},"content":{"rendered":"

<\/p>\n

Markets regulator SEBI announced measures to control the high volatility which has plagued the country’s stock markets.<\/p>\n

The Sebi said that these new norms will be effective from the beginning of trade on March 23 for a period of one month.<\/p>\n

These measures include limits on positions that can be taken up by investors in the F&0 segment.<\/p>\n

Furthermore, the regulator set certain conditions under which mutual funds or foreign investors can place bets on the index futures.<\/p>\n

The regulator’s norm to introduced limits on open positions for going short or long in index derivatives is expected to have a major affect on volatility.<\/p>\n

The norm mandates that short positions in index derivatives shall not exceed the “Mutual Funds’\/FPIs’\/Trading Members’\/Clients’” holding of stocks.<\/p>\n

Similarly, long positions in index derivatives shall not exceed the “Mutual Funds’\/ FPIs’ holding of cash, government securities, T-Bills and similar instruments”.<\/p>\n

Sebi said that these measures will be implemented to ensure orderly trading and settlement, effective risk management, price discovery and maintenance of market integrity.<\/p>\n

Additionally, the new measures are expected to reduce liquidity in the market.<\/p>\n

Lately, stock markets globally have been quite volatile due to the spread of Covid-19 pandemic and the resultant fear of an economic slowdown.<\/p>\n

“The movement in the Indian stock market has been broadly in tandem with the other global markets,” Sebi said in a statement.<\/p>\n

“Sebi and stock exchanges will continuously monitor the market developments and review the position and take any further suitable actions as may be required.”<\/p>\n","protected":false},"excerpt":{"rendered":"

Sebi introduces new norms to cub volatility<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[667],"tags":[],"class_list":["post-216434","post","type-post","status-publish","format-standard","category-business"],"_links":{"self":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/216434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/comments?post=216434"}],"version-history":[{"count":0,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/216434\/revisions"}],"wp:attachment":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media?parent=216434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/categories?post=216434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/tags?post=216434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}