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.

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E-mail ID will not be published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

  • Sebi must not be lax in weeding out mutual fund houses

    Last May, capital market regulator Securities and Exchange Board of India (Sebi) amended the Sebi (mutual funds) regulations, 1996, directing all fund

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

Arun Kumar Jain

Customer orientation needs human touch

In the mid-1990s, while researching drivers of corporate excellence, we ...

Kuruvilla Pandikattu SJ

Can religion help us protect our planet?

Though not factually true, in popular imagination, the relationship between ...

Shona Adhikari

Pop art is truly a feast for the eyes

The internationally reknowned Bruno Art Group’s presence in India had ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture