SEBI's F&O position limit affects several stocks
Regulator SEBI's recent decision to limit positions that can be taken in the futures and options (F&O) market have resulted in a ban period starting Monday for some stocks.
 
Markets regulator SEBI on Friday announced measures to control the high volatility which has plagued the country's stock markets. The Sebi said that these new norms will be effective from the beginning of trade on March 23 for a period of one month.
 
The security market regulator last week decided to bring down the market wide position in F&O contracts of a particular stock to 50 per cent from the earlier 95 per cent and also increased the F&O margins where positions are higher above the revised cap.
 
The affected stocks include Vodafone Idea, Indiabulls Housing Finance, Yes Bank, Jindal Steel & Power, Adani Enterprises, Just Dial, NCC, PVR and Punjab National Bank, among others.
 
They have been put in ban period as their open positions exceed the revised limits as per the latest SEBI circular, analysts said.
 
"Once client square up outstanding position, new position cannot be created even on same day," said Deepak Jasani, Head of Retail Research at HDFC Securities.
 
The current penalty structure adopted by the stock exchanges, clearing corporations may be enhanced to 10 times of the minimum and five times of the maximum penalties specified by the stock exchanges or clearing corporations, to function as an effective deterrent in the current market context.
 
For stocks in F&O segment meeting the following criteria, SEBI decided to revise MWPL may be revised to 50 per cent of the existing levels. Average Daily Price High Low variation percentage (during last five trading days) should be more than or equal to 15 per cent or Average MWPL utilization percentage (during last five trading days) should be more than or equal to 40 per cent.
 
"In the event MWPL utilization in a security crosses 95 per cent, derivative contracts enter into a ban period, wherein, all clients/trading members are required to trade in the derivative contracts of said scrips only to decrease their positions through offsetting positions. Any increase in open positions would attract appropriate penal and/or disciplinary action of the stock exchanges/clearing corporations," said the SEBI order.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    SEBI relaxes compliance norms for listed security issuers
    The Securities and Exchange Board of India (SEBI) on Monday relaxed compliance regulations for listed entities which have listed their non-convertible debentures (NCD), commercial papers (CP), non-convertible redeemable preference shares (NCRPS) and municipal debt securities.
     
    The development comes on the backdrop of the coronavirus scare and is a part of the regulators' efforts to ease compliance burden during the crisis period.
     
    The security market regulator has extended the issuance date for debt securities by 60 days to May 31, and the timeline for filing of large corporate initial and annual disclosures till June 30.
     
    Sharing the SEBI circular, Finance Minister Nirmala Sitharaman said: "In an ongoing exercise to ease the compliance burden during the #CoronavirusOutbreak, @SEBI_India has decided to relax some compliance provisions with regard to listed entities that have listed their NCDs, NCRPS, CPs and municipal debt securities. #IndiaFightsCorona."
     
    Last week, SEBI allowed listed companies to file their fourth quarter and annual financial results by June 30. In general, companies have to report their earnings within one month of a quarter-end and if results get delayed, the companies have to inform the exchanges.
     
    The regulator also extended the date of filing quarterly corporate governance reports by one month and for releasing quarterly shareholding pattern by three weeks.
     
    Government regulators have sprung into action to pacify the markets and companies.
     
    The Reserve Bank of India (RBI) also has come up with several steps, including open market purchase of government securities and variable rate term repos.
     
    On Monday, the central bank announced to conduct variable rate term repos of Rs 1 lakh crore.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COVID-19: SEBI Extends Dates for Company Result Submission till 30th June
    Taking cognisance of the corona virus (COVID-19) pandemic, market regulator Securities and Exchange Board of India (SEBI) on Thursday relaxed certain listing disclosure obligations, including submitting quarterly and FY2020 results.
     
    In a release, SEBI says, "Developments arising due to the spread of the virus have warranted the need for temporary relaxations in compliance requirements for listed entities...(SEBI) has decided to grant temporary relaxations from certain compliance stipulations specified under the SEBI (listing obligations and disclosure requirements) regulations, 2015 (LODR) to listed entities for the quarter and financial year ending 31 March 2020."
     
    Listed companies can now file their quarterly and yearly results for March 2020 by 30th June instead of 15 May 2020. SEBI also relaxed by three weeks, the period of filing shareholding pattern while easing the time for filing quarterly corporate governance report by a month.
     
     
    The COVID-19 has hit populations around the world and has restricted free movement of people, thereby hampering businesses and day to day functioning of companies. It has been declared a 'pandemic' by the World Health Organization (WHO).  
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