
SEBI proposes curbs on derivative-linked share moves
The Hindu
The Securities and Exchange Board of India (SEBI), India’s market regulator, proposes measures to contain extreme price movements in shares on which futures and options trade, including longer trading suspensions and restricting price movements.
The Securities and Exchange Board of India (SEBI), India’s market regulator, proposes measures to contain extreme price movements in shares on which futures and options trade, including longer trading suspensions and restricting price movements.
Also Read: SEBI moots mechanism for AMCs to deter possible market abuse, fraud
SEBI proposed in a consultation paper late on May 21 that if a share in the futures and options segment falls or rises by 10% a day, trading would be suspended for an hour, up from the current fifteen minutes, and then allowed to move only a further 2%, down from the current 5%.
The proposed restrictions follow a free fall this year in shares of billionaire Gautam Adani's group companies after U.S.- based short seller Hindenburg Research raised governance concerns in January. The group collectively lost more than $100 billion in market value soon after the Hindenburg report was published.
Also Read: Adani case: Supreme Court-appointed panel ‘clears’ SEBI
If shares are flagged for additional surveillance and monitoring should there be a daily limit for price moves, the regulator said.

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