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Sebi proposes to fix circuit filters on F&O scrips

IANS  |  Mumbai 

Capital markets regulator Sebi on Monday proposed to fix circuit filters or price bands on futures & options (F&O) scrips to curb excessive volatility.

In a discussion paper on "Applicability of Individual Scrip wise Price Bands or Circuit Filters" on F&O scrips, Sebi said: "Concerns have been raised that investors' wealth is getting wiped out in a single day by recent falls in stocks on which products are available, as no price bands or circuit filters are applicable on them."

"In view of recent abnormal intra-day price movements, suggestions are being made to review the rules to prevent such extraordinary price movements."

Derivatives markets reflect expectation of spot prices in the future, and as such price bands or circuit filters are generally not applied on them.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, February 12 2019. 00:36 IST
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