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SEBI moots measures to curb volatility in bourses

The Securities and Exchange Board of India in consultation with stock exchanges has decided to implement various measures with a view to further improve the market microstructure and provide for increased transparency, efficient price discovery and curb unhealthy market practices.

The SEBI said that it has been decided that no exchange shall allow the ''all or none'' or ''minimum fill'' order facility in the BSE's on-line trading system that gives the option to match trades at a pre-determined price and quantity. The price band applicable to the normal trades will become applicable to the negotiated trades (including cross deals, bulk deals and all trades where the price is not determined on the exchange's trading system).

As of date, the applicable price band is eight per cent from the previous day's close for the normal market on the exchange. All the regulations relating to the price bands for the securities in normal market will also apply to the negotiated trades.

The regulatory board has also decided that delivery and payment for all hand delivery trades (including trade for trade, negotiated trades, cross deals and bulk deals) must be completed within the time or on the date stipulated when entering into the deal which time shall not be more than seven days following the date of the contract.

UNI

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