 "Sebi cautious over India's surgical strikes across LoC")
Regulator has sought a report from stock exchanges on preparedness to deal with any adverse eventuality. Exchanges were also asked to draft a contingency plans and submit to it, said an anonymous source.
This move is followed by sharp dip equity indices have witnessed on Thursday. Sensex crashed by 465 points, while Nifty was down by 153 points. Rupee also tumbles to its lowest level to 66.95 against dollar.
Sebi wants to be ready for potential escalation of tension at border, especially after seeing market fluctuate, said an exchange official.
Meanwhile, bourses and regulator is keeping close watch on the manipulator looking to exploit volatile trends expected in several stocks and derivatives, especially those who are connected to the rupee movements, he added.
The motive of alertness is to ensure that there should be no attempts of defaults in the systems. And to also keep proper checks and balances on brokers, intermediaries who perhaps lure investors for hefty gains in futures trading in the given scenario.
Sebi in past also have beefed up its surveillance on various geopolitical developments, including uncertainty that occurred due to Brexit which has caused turmoil in global and currency markets. Also, events like general election and union budget, where market usually gets impacted.
