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Sebi imposes price filters, circuit breakers

The Securities and Exchange Board of India on Wednesday imposed price filters and index-based circuit breakers on the Bombay Stock Exchange and National Stock Exchange.

Sebi chairman D R Mehta, who held an emergency meeting on Wednesday morning with top officials of BSE and NSE to assess the situation in the aftermath of the terrorists attack in the US, told newspersons that the market would remain open as usual and he felt that there would not be any major impact on share trading in India due to the closure of the American markets.

However, as a precautionary measure, Mehta said that Sebi had imposed a market wide index based circuit breaker that would be kept at the level of 10 per cent of the fall of Sensex and S&P CNX Nifty of the pre-announced index levels.

Similarly, the 53 individual securities in the derivative segment on which currently exchanges apply a price filter at the level of 20 per cent for the purpose of order verification, would now be reduced to the level of 10 per cent and orders beyond this level would not be accepted or approved by the trading system of the exchanges.

However, the price bands on other scrips shall remain unchanged.

Mehta said, Wednesday's measures would be applicable with immediate effect till further orders.

Meanwhile, prices of prominent shares on the BSE tended to move down in early hours due to lack of support from local operators.

However, with the announcement of Sebi measures, prices were held in a narrow groove. The BSE Sensex which opened nearly 200 points lower at 2950 points, recovered modestly to 3036 points by mid-morning session.

Share traders said, there would not be much activities in the market and the prices would seek lower levels due to lack of support.

Overall, the sentiment was weak.

UNI

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