Apr 20, 2020
PR No.:
22/2020
Sub: Regulatory measures introduced by SEBI to continue in view of ongoing uncertainty
1. In
view of the uncertainty observed in the recent past owing to concerns relating
to COVID-19 pandemic and the resultant fear of economic slowdown, SEBI vide
Press Release dated March 20, 2020
had introduced various regulatory measures for a period of one month w.e.f.
March 23, 2020. The measures were taken with the objective of ensuring orderly
trading and settlement, effective risk management, price discovery and
maintenance of market integrity.
2. Since
the implementation of the aforementioned measures, Indian securities market has
witnessed recovery in broad market indices. Further, there has not been any
major disruption in Stock Exchanges, Clearing Corporations and Depositories on
account of the existing robust regulatory framework. However, the expected
volatility in the stock market still remains on the higher side.
3. The
measures taken by SEBI on March 20, 2020 also overlapped with the lockdown
measures implemented in the country for a period of 21 days w.e.f. March 25,
2020 (i.e. till April 14, 2020) by Ministry of Home Affairs (MHA) vide Order
dated March 24, 2020. MHA, after assessing the situation of COVID-19 pandemic
in India, has recently extended the lockdown in the country upto May 03, 2020 vide
Order dated April 14, 2020.
4. As
the stock markets (both domestic and global) are expected to be volatile in the
near future owing to concerns relating to COVID-19 pandemic and the resultant
fear of economic slowdown, keeping in view the objective of ensuring orderly
trading and settlement, effective risk management, price discovery and
maintenance of market integrity, it has been decided that the measures implemented
since March 23, 2020 will continue to be in force till May 28, 2020.
5. The
stock exchanges and clearing corporations will be issuing necessary
instructions to the market participants in this regard.
6. SEBI
and Market Infrastructure Institutions viz. Stock Exchanges Clearing
Corporations and Depositories are continuously monitoring the market
developments and will take any further suitable actions as may be required.
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