FinMin team in Mumbai to take stock of election result day preparations

The team will take a feedback on measures that need to be taken to withstand any possible shocks that may arise out of trading activity on May 16

The Finance Ministry is leaving no stone unturned to ensure smooth functioning of the market on May 16, the election result day.  

According to sources, a team of senior officials from the ministry led by Manoj Joshi, joint secretary—capital markets, will be visiting Mumbai on Tuesday to take stock and gather feedback from the various financial sector regulators on their preparedness ahead of the election results

The meeting is likely to take place at capital market regulator Securities and Exchange Board of  India's (Sebi) headquarters in Mumbai's Bandra-Kurla Complex (BKC).

Representatives from stock exchanges and the broking industry are also likely to be present for the event, a source said.

Officials from banking sector regulator Reserve Bank of India (RBI), insurance regulator Insurance Regulatory and Development Authority (IRDA) and stock exchange officials are also likely to be present for the event, a source said.

It is believed that the feedback from market participants will be placed before the Financial Stability and Development Council (FSDC), which is scheduled to meet next week to discuss the preparedness of the financial markets on the election result day.

“The ministry will also take a feedback on measures that need to be taken to withstand any possible shocks that may arise out of sharp rise in volumes and trading activity on May 16,” said a person with direct knowledge of matter.

Sebi has already asked stock exchanges to strengthen their trading and surveillance systems to avoid any untoward event on the election result day. Exchanges have been particularly asked to monitor ‘algo’ orders and trades in the futures & options segment.  

Bourses have also been asked to conduct ‘mock stress test’ to ensure they are able to handle possible shocks that might arise from sudden increase in volumes.