Sebi Calls More Ses For Surveillance Meet

Sebi chairman D R Mehta said yesterday that the decision to call more exchanges was taken so that there could be a broader discussion and checks developed on early detection of payment problems building up at exchanges.

For all practical purposes, today's meeting has become a meeting of the Inter Exchange Co-ordination group itself and not of its offshoot, the Inter-exchange Surveillance Group (ISG).

Mehta said that Sebi and the exchanges were expected to discuss how the defaults at BSE, Vadodara Stock Exchange went undetected and the kind of watch necessary.

He said some scrips may even require the 33 times exposure limit to be brought down much lower, depending on the volatility of the stock.

 

But these are issues on which we want stock exchanges themselves to come to a decision. Sebi will step in only when there is a requirement of having uniformity in the actions, the Sebi chairman said. According to sources associated with market surveillance, one of the options which could be discussed is to have divide scrips into groups so as to facilitate separate exposure limits for each group.

This is so since the groups will have vast differences in liquidity, volatility and market capitalisation. Owing to these factors, the risk associated with each of these groups will tend to differ. What will be applicable for a stock like Reliance may not be applicable for a B2 stock, a sources said.