Securities and Exchange Board of India (Sebi) and stock exchanges beefed up their surveillance mechanism amid spike in volatility in the market following a rout in the global markets.
According to the sources, regulator and bourses are also keeping a close tab on the market manipulator who may take advantage of volatile trends expected in both equity and the derivative segments.
Sebi and stock exchanges had a discussion on the ongoing sell-off in the market. The regulator expressed concerned over systemic risk to the market if margin calls get triggered due to stock volatility in the stock prices, said a source.
“As a proactive measure, regulators and exchanges have been jointly monitoring positions across the market and calling for additional margins where required,” said Vikram Limaye, MD & CEO, National Stock Exchange (NSE). “The margining framework in India is robust enough to handle current market volatility. There has been no margin pressure over the last few days, all settlements have been completed successfully and margin calls have been honored,” he added.
Official say the recent Sebi directive to brokers, asking them to collect higher margins would help in reducing the potential risk further.