Sebi, exchanges step-up vigil before Karnataka polls

Regulator Sebi as well as stock exchanges have stepped up surveillance to keep a close tab on possible manipulations and excessive volatility in the markets ahead of assembly elections results in Karnataka.

The results of the single-phase assembly elections will be declared on May 15. However, before the formal announcement of the results, several agencies conducted exit polls, predicting the outcome.

The exit poll results for the election were announced after voting ended on May 12.

A senior official said the markets regulator and stock exchanges have beefed up surveillance and risk management systems to check any manipulative activities and excessive volatility risks on Monday and Tuesday.

Similar additional safeguards have been effectively used during polls in Gujarat, Uttar Pradesh and other states in the recent past as also at the time of 2014 general elections.

The keenly-contested elections in Karnataka is likely to have a major bearing on the central government's economic agenda as well as on the Lok Sabha polls next year. The Karnataka polls are also being seen by some as barometer for the prevailing public mood about the Narendra Modi government at the Centre.

The enhanced vigil on the markets will continue till May 15, when the results of election will be declared. Poll results will start coming in during trading hours on May 15. Typically, manipulators tend to exploit such volatile situations in the stock market.