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Rediff.com  » Business » Election results: Sebi, markets up vigil on stocks

Election results: Sebi, markets up vigil on stocks

May 15, 2014 17:22 IST

Image: As election result will be out on Friday, markets pin hope of a rally.
Photographs: Ajay Verma/Reuters

To ring fence the capital market from possible manipulations against the backdrop of election results on May 16,

Sebi as well as bourses and other market entities have prepared an elaborate vigil mechanism.  

While market authorities have been already monitoring stock movements very closely since last few days, which saw markets surging to record highs on the back of exit poll and other predictions, they are now mainly focussing on tackling any possible shocks on Friday and on Monday.

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Tags: Sebi

Election results: Sebi, markets up vigil on stocks

Image: Markets will operate as per their routine time on election day.
Photographs: Reuters

The counting of votes for 543 Lok Sabha constituencies will begin on Friday at 8 am, while clear trends are likely to emerge by afternoon and final results may keep coming out till late evening.     

The markets would open as per their normal time at 9 am and close at 3.30 pm, leaving scope for impact of the results on Monday as well after weekly trading holidays on Saturday and Sunday.

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Election results: Sebi, markets up vigil on stocks

Image: Stocks of companies based out of Gujarat will be closely.watched.
Photographs: Reuters

A special team at Securities and Exchange Board of India (Sebi) is keeping a close tab on the stock market movements, while another team would also be monitoring the election results as they get announced to understand whether price movements are linked to outcomes in various constituencies, sources said.     

According to sources, the stock movement of companies related to Gujarat and many others are being closely watched as they have witnessed huge rallies in recent weeks.

Besides Indian market movements, the trends in overseas markets and factors affecting foreign institutional investors are also being monitored almost on a 24/7 basis.      

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Election results: Sebi, markets up vigil on stocks

Image: Stock exchanges have put in place various circuit filters to stave off excessive volatility in stocks on election day.
Photographs: Reuters

Besides, stock exchanges have put in place various circuit filters to stave off excessive volatility in stocks as well as derivatives segments.           

Brokerages and other market entities are also advising investors to ensure that there are no sudden spurts or falls in the market, while investors are being discouraged from excessive margin exposure.  

The aim is to ring fence the interest of investors and ensure smooth functioning of the market tomorrow by preventing manipulative activities, sources said.

 

Tags: Sebi
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