Exchanges prepared for volatility tomorrow: Sebi

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

EDITORIAL OF THE DAY

  • The government must no longer handhold state-owned banks

    Every year, successive finance ministers are compelled to top up capital levels in state-owned banks.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Taslima Nasreen

Hate in the time of bhaijaan

A few days ago I went to watch Bajrangi Bhaijaan, ...

Purnendu Ghosh

Death reveals the true colours of life

Death is instantaneous but it comes progressively. Some say, death ...

Dharmendra Khandal

Go spot a gecko

Iam sure you must have read about how a lizard ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture