SEBI’s Special Trading Session: Ensuring Market Resilience

Prepare for SEBI’s special trading session with insights on circuit filters, settlement procedures, and market dynamics. Stay informed to navigate tomorrow’s trading with confidence.

The Securities and Exchange Board of India (SEBI) has mandated a special trading session to bolster market resilience in the face of potential contingencies. This initiative aims to ensure that exchanges can seamlessly transition to a disaster recovery site if needed. Let’s delve into the details of this unique trading arrangement.

Today’s NSE Share Bazaar

Two-Session Structure for Live Trading

The special trading session comprises two distinct segments, each replicating regular trading activities. The first session kicks off at 9:00 a.m., featuring a pre-open period until 9:08 a.m., followed by an hour-long live trading session until 10:00 a.m. Notably, live trading will commence at the primary site and later transition to the disaster recovery site.

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Transition to Disaster Recovery Site

Following the initial session, a switch to the disaster recovery site occurs. The second session’s pre-open phase starts at 11:15 a.m., concluding at 11:23 a.m., paving the way for trading from 11:30 a.m. to 12:30 p.m. This segment operates exclusively from the disaster recovery site, ensuring continuous market access.

SEBI's Special Trading Session

Key Highlights and Changes of SEBI’s Special Trading Session

Tomorrow’s trading session introduces notable changes, including a 5% circuit filter for all securities, including FNO (Futures and Options) securities, a departure from regular trading norms. However, stocks subject to a 2% circuit filter will maintain their existing thresholds. Importantly, all pending orders from the first session will be annulled before transitioning to the disaster recovery site, prohibiting intraday trading.

Settlement and Trading Considerations

Given that March 2nd falls on a Saturday, it is a designated clearing holiday. Consequently, any bill credits or intraday profits accrued on this day won’t reflect in limits, with trades from both Friday and Saturday being settled together on Monday, March 4th. Traders are advised against selling shares purchased on Friday during the special session on the following day.

Risk Management and Mutual Fund Activity

Risk management procedures, such as RMS selling, will proceed as usual, underscoring the importance of maintaining adequate margins in demat accounts. While mutual fund activities typically remain operational on Saturdays, they will be suspended during this special trading session.

Conclusion: Preparing for Market Contingencies

SEBI’s initiative to conduct a special trading session underscores its commitment to fortifying market infrastructure against potential disruptions. Traders and investors must be cognizant of the unique aspects of tomorrow’s trading, including circuit filter adjustments and settlement considerations. By adhering to these guidelines, market participants can navigate the session with confidence, ensuring continuity and stability in India’s financial markets.

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