MEMBER'S LOGINX
| Login Failure | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
- Home
- Outlook Arena
- Feb 15, 2000 - Sebi gears up to tackle volatility
Sebi gears up to tackle volatility
The Securities and Exchange Board of India (Sebi) has initiated several measures to curb volatility in the markets. The regulator had implemented the first round of measures last week when it ordered stock exchange authorities to impose ad hoc margins on leading 25 brokers. The new measures implemented by the Sebi include:
- Institutional investors including foreign institutional investors, domestic financial institutions, mutual funds and banks brought within the ambit of margins
- Daily margin of 5% on net outstanding positions of brokers in 10 select stocks (mentioned below)
- 50% of additional capital and margins to be paid in cash (applicable by end of March)
- Brokers will collect margins from clients where margins exceed Rs 100,000
The markets have witnessed a sharp rally since the beginning of this month (see graph) on the back of strong buying interest shown by foreign investors. Coupled with this, the surge in inflows into mutual funds has also contributed to the heightened buying interest in the markets. However, two things need to be looked at to justify the Sebi's move. First, there has been a sharp rise in volatility. To give an example, the BSE Sensex gyrated over 200 points in the last trading session alone. Second is the sharp rise in the net long positions to over Rs 40 bn. The second factor indicates that the involvement of momentum investors in the current bull run has increased dramatically.
The Sebi is taking precautionary measures to insure that the extent of leveraged buying is reduced in the markets. The move is definitely warranted and needs to be implemented forcefully.
More Views on News
Best Banking & PSU Debt Funds to Invest in 2021 (Outside View)
Apr 13, 2021PersonalFN explains the outlook for Banking & PSU Debt funds and the best Banking & PSU Debt funds that can be considered for investment in 2021.
India: Recovery Stalled by Vaccine Games? (The Honest Truth)
Apr 13, 2021Ajit Dayal on how India's vaccine strategy will impact the markets.
Why Did the Market Crash on Monday? (Fast Profits Daily)
Apr 13, 2021In this video, I'll you what I think is the real reason behind yesterday's market crash.
The Next Set of Smallcap Winners (Profit Hunter)
Apr 13, 2021Price is the only due diligence one might require to buy this business.
Should Mutual Fund Investors Worry About Partial Lockdown? (Outside View)
Apr 12, 2021PersonalFN explains whether the second wave of COVID-19 infections impact your mutual fund investments.
More Views on NewsMost Popular
My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)
Mar 31, 2021A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.
My Stock Trading Strategy (Fast Profits Daily)
Mar 31, 2021In this video I'll show you exactly how I go about picking stocks for trading.
4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)
Apr 6, 2021Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.
If the Market Falls, I Will Do This... (Fast Profits Daily)
Apr 1, 2021What should you do if the market falls? In this video, I'll tell you what I will do.
India: Recovery Stalled by Vaccine Games? (The Honest Truth)
Apr 13, 2021Ajit Dayal on how India's vaccine strategy will impact the markets.
MoreOUR TOP 5 IDEAS
- India's Revival: A Once-in-a-generation Wealth Making Opportunity
- Are You Making One of These 15 Costly Mistakes While Investing. Learn more!
- Covid-19 Proof Multibagger Stocks - Download this FREE Report Now
- Free Report: The Secret to Increasing Your Trading Profits Daily!
- No Guessing, No Hunches, and No Missed Trends Ever! Join Us on YouTube Now.
S&P BSE SENSEX
Apr 13, 2021 03:38 PM
MARKET STATS
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
FREE NEWSLETTERS
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
- Basics of Value Investing
- Benjamin Graham
- How to Invest in Gold
- How to Invest in Silver
- Best Stocks to Buy Today
- Warren Buffett - The Value Investor
- The Best Small-cap Stocks to Buy
- The Best Bluechip Stocks to Buy
- Your Ultimate Guide to Penny Stock Investing
- 10 Rules for Successful Long-Term Investing
- How to Invest in the Share Market
- Momentum Moves
FOLLOW
APP
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster requests your view! Post a comment on "Sebi gears up to tackle volatility". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!