Monday, April 20, 2020

SEBI Measures in view of ongoing market volatility

SEBI Measures in view of ongoing market volatility

Regulatory measures introduced by SEBI to continue in view of ongoing uncertainty

• OVERVIEW

Securities and Exchange Board of India (SEBI) vide Press Release No. PR No.: 22/2020 issued and publish dated 20th April, 2020, has published Regulatory measures introduced by SEBI to continue in view of ongoing uncertainty due to the COVID – 19 pandemic”

In view of the situation arising due to COVID-19 pandemic and extended lockdown period, it has been decided to grant the various relaxations to listed entities due to the COVID-19 pandemic.

Key Highlights:

• 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.

• there has not been any major disruption in Stock Exchanges, Clearing Corporations and Depositories.

• the expected volatility in the stock market still remains on the higher side.

• 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)

• SEBI, 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.

• The stock exchanges and clearing corporations will be issuing necessary instructions to the market participants in this regard.

• 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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