Sebi, bourses review risk management systems amid mayhem

With the stock market going on a free fall, Sebi as well as exchanges today reviewed the risk management systems in place to ensure safety of the market place and prevent possible manipulations.
Sebi is also keeping a close vigil, especially to curb possible instances of manipulations in stocks amid the bloodbath which saw the benchmark Sensex registering its biggest ever single day fall.
Both the regulator and stock exchanges today reviewed their risk management systems and prepared themselves in case market volatility spiral further tomorrow, sources said.
Existing systems are upgraded constantly to tackle any unforeseen circumstances, they added.

Among others, circuit filters are there for individual stocks as well as the indices.
In a bloody carnage on the Dalal Street, the benchmark Sensex plummeted 1,624.51 points, its biggest single-day fall, amid a sharp global sell-off triggered by a Chinese rout.
The index ended the day 5.94 per cent down at 25,741.56 points as jittery investors sold shares across all sectors including energy, banking, auto, IT, infrastructure and real estate, even as Finance Minister Arun Jaitley and RBI Governor Raghuram Rajan sought to soothe the frayed nerves saying fundamentals of Indian markets remain strong.