The Securities and Exchange Board of India vide its notification dated 26th August 2020 has decided to extend all the regulatory measures taken by SEBI earlier on 20th March 2020, to continue to be in force till 24th September 2020.
SEBI in its earlier notification had put a cap on the bearish bets that foreign investors, mutual funds, and proprietary desks could take on index derivative contracts without owning the underlying shares.
Sebi also tweaked the requirement of flexible price bands and one condition to relax the price band is that a minimum of 25 trades should be executed with five different unique client code on each side of the trade at, or above, 9.9%.
Further, these measures were taken with the objective of ensuring orderly trading and settlement, effective risk management, price discovery and maintenance of market integrity.
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