SEBI has issued a circular enhancing dynamic price bands for ...
Enhancement of Dynamic Price Bands for scrips in Derivatives segment by SEBI. Strengthening volatility management & minimizing information asymmetry.
Circulars SEBI
May 27, 2024
SEBI has issued a circular enhancing dynamic price bands for scrips in the Derivatives segment. The circular outlines the mechanism for dynamic price bands, including conditions for flexing price bands, cooling off periods, and aligning price bands between underlying and futures contracts. The modifications aim to strengthen volatility management, minimize information asymmetry, and provide orderly price movements. Key changes include increasing conditions precedent before flexing price bands, aligning price bands across exchanges, and adjusting flexing percentages based on market trends. Stock Exchanges are directed to implement the circular in phases, with specific effective dates for different provisions. The circular is issued u/s 11(1) of the SEBI Act to protect investor interests and regulate the securities market.
View Source