Sebi unveils measures to tackle market volatility, curbs short selling

Market players said the move was to discourage traders from aggressively building short positions.

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Sebi has decided to increase the margin rate to 40 per cent in the cash segment in a three-phased manner

Samie ModakJash Kriplani Mumbai
The Securities and Exchange Board of India (Sebi) on Friday announced measures to control volatility in stocks. Curbs on short selling, a steep increase in margins, a 10-fold increase in penalties, and reducing the outstanding positions available for derivatives trading are some key changes the regulator announced.

Sebi has said the short positions in the derivatives market cannot exceed the value of the holdings of the underlying stocks or the collaterals provided by them. 

An additional position limit of Rs 500 crore will be available for the futures and options (F&O) segment.

Market players said the move was to discourage traders from aggressively

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First Published: Mar 20 2020 | 11:33 PM IST

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