- Sebi said on Saturday that it is committed to ensuring the integrity of the stock market.
- All necessary regulatory measures have been taken to address excessive volatility in individual stocks, Sebi said.
- Without specifically naming the Adani group, the regulator said unusual price movements in a business conglomerate’s stock had been observed over the past week.
New Delhi: Amid furious controversy over a stock collapse of the Adani group, regulator Sebi said on Saturday that it is committed to ensuring the integrity of the stock market and that all necessary supervisory measures have been taken to avoid excessive volatility in individual tackling equities. Without specifically naming the Adani group, the capital markets watchdog said in a statement that unusual price movements have been observed in the shares of a business conglomerate over the past week.
Officials confirmed that the statement was only issued in the wake of the Adani case.
“As part of its mandate, Sebi aims to maintain the orderly and efficient functioning of the market and has put in place a set of well-defined, publicly available regulatory measures (including the ASM framework) to address excessive volatility in specific stocks.
“This mechanism is automatically triggered under certain conditions of price volatility in a stock,” said the Securities and Exchange Board of India (Sebi).
Stock exchanges BSE and NSE have placed three companies of the Adani group – Adani Enterprises, Adani Ports and Special Economic Zone and Ambuja Cements – under their short-term supplementary supervision measure (ASM), which effectively means that intraday trading has a 100 percent margin in advance and is intended to curb speculation and short-selling in these stocks.
Sebi further said that in all specific entity-related matters, if information comes to its attention, it will be investigated according to existing policies and appropriate action taken after due investigation.
“Sebi has consistently taken this approach on entity-level issues and would continue to do so going forward,” it added.