SEBI’s big statement has come to the fore amidst growing controversy over the fall in Adani Group’s shares. It said that it is committed to ensure fairness, efficiency and all necessary monitoring in the stock market while maintaining its sound fundamentals. The market regulator said measures are being taken to deal with excessive volatility in specific stocks.
Sebi said in a statement without naming the Adani group that the shares of a business group have seen abnormal volatility in the last week. Officials confirmed that the statement was issued in the wake of the Adani case.
The Securities and Exchange Board of India (SEBI) said in a statement that as part of its mandate, SEBI seeks to maintain orderly and efficient functioning of the market. Well-defined, publicly available monitoring measures (including the ASM framework) are in place to deal with extreme volatility in a particular stock.
According to the statement, this system gets activated automatically under certain conditions when there is a fluctuation in the prices of any share. Stock exchanges – BSE and NSE have placed three Adani Group companies – Adani Enterprises, Adani Ports and Special Economic Zone and Ambuja Cements – under their short-term Additional Monitoring Measures (ASM).
This means that 100 per cent upfront margin will be applicable for ‘intra-day trading’ to prevent speculation and ‘short-selling’ in these shares.
SEBI said that after all specific cases are brought to its notice, the regulator examines them as per the extant policies and takes appropriate action.
