Exchanges prepared for volatility tomorrow: Sebi

Markets watchdog Sebi today said the stock exchanges are prepared to deal with "any

RELATED ARTICLES

irregularity" in trading tomorrow, when the results for the 2014 Lok Sabha elections are to be announced.

"We want to assure investors that we are prepared for any eventuality and if anyone indulges in any irregularity in the market, we are fully prepared for that," Sebi Chairman UK Sinha told reporters on the sidelines of an Assocham conference here.

"Sebi along with the Reserve Bank and the government, has prepared a strategy for any unusual market movement. We have all the rules in place. So the exchanges will act accordingly, if anything unusual happens. We are conducting stress-tests for markets on a daily basis," Sinha added.

In the last two elections, stocks had reacted sharply after results were announced, triggering circuit-breakers.

While in 2004, the markets tanked after the NDA was voted out, in 2009 the market hit circuit breakers many times on the day of counting after the UPA was voted back to power.

The Sensex on May 18, 2009 hit the upper circuit within 30 seconds of the market opening for the first time after the results were declared, and trading was halted for two hours.

The indices again hit the upper circuit within minutes of the markets re-opening, and trading was called off for the day.

On May 14, 2004, when the Congress-led UPA emerged the surprise winner in the general elections, the Sensex fell as much as 6.1 per cent and plunged another 11.14 per cent the next day.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Time for banks to pass on RBI rate cuts to stakeholders of the economy

    Reserve Bank of India’s decision to cut the repo rate by 25 basis points, from 7.75 to 7.50, is a move in the right direction.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Roopen Roy

The making of a digital Bharat

Exactly 20 years ago, Nicholas Negroponte of MIT Media Labs ...

Zehra Naqvi

For the love of language

A video doing the rounds in social media these days ...

Dharmendra Khandal

‘Poop’ coffee anyone? If civets suffer, so be it

That a drink which proudly associates itself with animal poop ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture