1. In the recent past, world over, the stock markets have been quite volatile owing to concerns relating to COVID-19 pandemic and the resultant fear of economic slowdown. The movement in the Indian stock market has been broadly in tandem with the other global markets.
2. On account of our existing robust risk management framework, despite significant movements in the market, there has not been any disruption in the settlement cycles of the Stock Exchanges / Clearing Corporations.
3. Taking note of the continued abnormally high volatility in the market, SEBI discussed with the Stock Exchanges, Clearing Corporations and Depositories appropriate measures that may be taken in the existing circumstances.
4. Pursuant to the said discussions and keeping in view the objective of ensuring orderly trading and settlement, effective risk management, price discovery and maintenance of market integrity, measures as per Annexure A have been taken.
5. These measures will kick-in w.e.f. the beginning of trading on March 23, 2020 and will be in effect for a period of one month. The position would be reviewed thereafter and appropriate view taken thereupon.
6. The stock exchanges / clearing corporations will be issuing necessary instructions to the market participants in this regard.
7. SEBI and Stock Exchanges will continuously monitor the market developments and review the position and take any further suitable actions as may be required.
*Read the detailed notification here: Notification
Securities Exchange Board of India
[Press Release dt. 20-03-2020]