SEBI steps in to tackle volatility

The Securities and Exchange Board of India has raised the margins in the cash segment while tightening norms for position limits in derivatives, as volatility continues to rise in the stock market.

The aim was to ensure effective risk management and market integrity, a statement said. The marketwide position limit in certain stocks in derivatives has been revised to 50% and the penalty on an entity found to exceed permissible limits has been enhanced to 10 times of the current minimum and five times of the maximum penalty structure.

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