Sebi forms vigil mechanism to fence markets ahead of Lok Sabha poll
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To ring fence the capital market from possible manipulations against the backdrop of election results on Friday, Sebi as well as bourses and other market entities have prepared an elaborate vigil mechanism. While market authorities have been already monitoring stock movements very closely since last few days, which saw markets surging to record highs on the back of exit poll and other predictions, they are now mainly focusing on tackling any possible shocks tomorrow and on Monday. The counting of votes for 543 Lok Sabha constituencies will begin tomorrow at 8 am, while clear trends are likely to emerge by afternoon and final results may keep coming out till late evening. A special team at Securities and Exchange Board of India (Sebi) is keeping a close tab on the stock market movements, while another team would also be monitoring the election results as they get announced to understand whether price movements are linked to outcomes in various constituencies, sources said. According to sources, the stock movement of companies related to Gujarat and many others are being closely watched as they have witnessed huge rallies in recent weeks. Besides Indian market movements, the trends in overseas markets and factors affecting foreign institutional investors are also being monitored almost on a 24/7 basis. Besides, stock exchanges have put in place various circuit filters to stave off excessive volatility in stocks as well as derivatives segments.
To ring fence the capital market from possible manipulations against the backdrop of election results on Friday, Sebi as well as bourses and other market entities have prepared an elaborate vigil mechanism. While market authorities have been already monitoring stock movements very closely since last few days, which saw markets surging to record highs on the back of exit poll and other predictions, they are now mainly focusing on tackling any possible shocks tomorrow and on Monday. The counting of votes for 543 Lok Sabha constituencies will begin tomorrow at 8 am, while clear trends are likely to emerge by afternoon and final results may keep coming out till late evening. A special team at Securities and Exchange Board of India (Sebi) is keeping a close tab on the stock market movements, while another team would also be monitoring the election results as they get announced to understand whether price movements are linked to outcomes in various constituencies, sources said. According to sources, the stock movement of companies related to Gujarat and many others are being closely watched as they have witnessed huge rallies in recent weeks. Besides Indian market movements, the trends in overseas markets and factors affecting foreign institutional investors are also being monitored almost on a 24/7 basis. Besides, stock exchanges have put in place various circuit filters to stave off excessive volatility in stocks as well as derivatives segments.
