Sebi proposes circuit filters for F&O segment to curb price volatility

To check excessive price movements, capital markets regulator Sebi Monday proposed a slew of measures including capping the maximum daily movement of up to 20 per cent for all stocks including that are part of the future and options (F&O) segment. There have been concerns that investors' wealth is getting wiped out in a single day by recent falls in stocks on which derivative products are available, as no price band are applicable on them. Besides, sharp plunge in the shares of several companies including Dewan Housing Finance and e-commerce player Infibeam have been noticed in recent times. According to Sebi, the examination of price movement of scrips, on which derivatives are available, during the last six months, revealed 40 scrips witnessed intra-day movement of over 20 per cent. Out of this, 29 stocks have seen intra-day movement between 20 per cent and 30 per cent. Derivatives markets or F&O segment reflect expectation of spot prices in the future and currently price ...

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