The Securities and Exchange Board of India (“SEBI”) has, in a Press Release dated 26th August, 2020, informed that following regulatory measures introduced in light of the abnormally high volatility in the stock markets owing to the prevailing COVID-19 pandemic, by the SEBI Press Release dated 20th March, 2020, will continue to be in force till 24th September, 2020.
- The Market Wide Position Limit (MWPL) have been revised to 50% of the existing levels for the purpose of introducing ban period on fresh positions and not for determining the enhanced eligibility criteria for derivatives stocks.
- The current penalty structure adopted by the stock exchanges / clearing corporations have been enhanced to 10 times of the minimum and 5 times of the maximum penalties specified by the stock exchanges / clearing corporations, to function as an effective deterrent in the current market context.
iii. The margin for stocks has been increased for meeting the above-mentioned criteria for MWPL.
- Margin for Non-F&O Stocks in Cash Market has been increased.
- Position limits in equity index derivatives (futures and options) have been revised.
- The dynamic price bands can now be flexed only after a cooling-off period of 15 minutes from the time of meeting the existing criteria specified by stock exchanges for flexing.
Source: Securities and Exchange Board of India
