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SEBI's intention behind circuit filter is to control extreme volatility, says NSE MD Vikram Limaye

Updated : February 14, 2019 11:24 AM IST

Market regulator, SEBI recently floated a consultation paper to curb extreme price volatility in the market. The paper also proposes to cap the maximum daily movement of all stocks including in F&O to up to 20 percent.

CNBC-TV18's Yash Jain spoke with NSE's MD & CEO, Vikrama Limaye at the EY Entrepreneur of the Year Awards to understand the rationale behind the move. He said, “I don’t think it is necessarily a negative, we have to reflect on the reason why it is done and it has been put out for discussion at this point. So, there is an opportunity for people to contribute.”

“SEBI has an open mind to make sure whatever we put in place is for the good of markets and the good of investors,” he added.

The objective of the exercise is to try and control extreme intraday volatility and not to control volatility per se, he said, adding that, it would help control extreme disruptions.

Talking about the timing of co-location case, he said it would he couldn’t comment on it because the case is underway but that consent application has been filed with SEBI a while ago and so it would be part of the overall process in terms of when it gets taken up, whether it gets taken up – those conversations are still being discussed.
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