Lockdown: Sebi writes state govts to allow market personnel to reach offices

Amid problems faced by stock brokers and other staff related to market entities in reaching their offices due to a nationwide lockdown, markets regulator Sebi on Wednesday asked all the states and union territories to allow such personnel to commute to their workplaces for smooth functioning of the capital markets.

The development comes amid a 21-day nationwide lockdown announced by Prime Minister Narendra Modi on Tuesday as part of efforts to curb the spread of coronavirus.

However, the home ministry said capital and debt market entities notified by Sebi will be exempted from such closure.

Stock brokers' association Anmi and the Commodity Participants Association of India (CPAI) said brokers are facing problem while commuting to their respective offices due to lockdown as police are not allowing any movement.

Consequently, the Securities and Exchange Board of India (Sebi) has written to all the states and union territories to allow movement of personnel of the entities notified by the regulator for the smooth functioning of the capital markets.

Besides, the regulator has asked to facilitate the functioning and movement of its employees, according to the letter.

"Today, Sebi has written to chief secretaries/ administrators of all states/ UTs, requesting them to facilitate the functioning and movement of personnel of entities notified by Sebi for the smooth operation of the capital markets," a Sebi spokesperson told PTI.

In the letter, Sebi has referred to an order issued by the Ministry of Home Affairs, which said: "The order...provides that commercial and private establishment shall be closed down but that the capital and debt market service as notified by the Securities and Exchange Board of India shall be exempted from such closures."
Stock broker Abhinav Agarwal, who is a director of Abhipra Capital, said the biggest difficulty is that the bare minimum staff is not able to reach the office, trading may be done online but back-office work requires people. "They are afraid because of police behaviour. Families are also pressurising not to come out. Meeting with regular compliances for day-to-day trading is becoming impossible without the staff."