In the midst of a raging controversy over a stock market meltdown in Adani Group stocks, regulator Sebi said on Saturday that it is committed to ensuring the integrity of the stock market and that all necessary surveillance measures are in place to address any excessive volatility in individual shares.
Without mentioning the Adani Group, the capital markets watchdog stated in a statement that unexpected price movement in the equities of a corporate conglomerate was detected in the previous week.
Officials acknowledged that the statement was prepared only in response to the Adani problem. Sebi’s mandate includes ensuring the market’s orderly and efficient operation, and it has implemented a series of well-defined, publicly available monitoring methods (including the ASM framework) to handle excessive volatility in certain equities.
“This mechanism gets automatically triggered under certain conditions of price volatility in any stock,” the Securities and Exchange Board of India (Sebi) said.
Stock market transactionsThe BSE and NSE have placed three Adani Group firms under their short-term additional surveillance measure (ASM), which effectively implies that intra-day trading would demand a 100% upfront buffer and is intended to reduce speculation and short-selling in these stocks.
Sebi also said that if any information about a particular entity comes to its attention, it is evaluated according to the rules that are already in place, and then the right steps are taken.
“Sebi has consistently followed this approach on entity-level issues and would continue to do so in the future as well,” it added.