Sebi not reviewing share margin system: FM

Finance Minister P Chidambaram on Tuesday said that market regulator Securities and Exchange Board of India (Sebi) is not considering a review of the share margin requirement system.

In a written reply to the Rajya Sabha, the finance minister said the prevailing risk management system was found to be robust during the recent volatility witnessed in the stock market.

"The government has put in place systems and practices to promote a safe, transparent, and efficient market and to protect market integrity," Chidambaram said.

The systems instituted include advanced risk management mechanisms comprising online monitoring and surveillance, various limits on positions, margin requirements, circuit filters, etc.

Measures taken to broaden and deepen markets include, screen-based trading system, dematerialisation of securities, corporatisation and demutualisation of exchanges, settlement through clearing corporation, trading of derivatives, etc.

R-Power IPO not rigged
Bloomberg adds: In another reply to the Upper House of Parliament, Chidambaram said Reliance Power, which slumped 17 per cent on its first day of trading, didn't collude with its financial advisers to fix the price for its $3 billion share sale.

"No evidence of rigging by promoters or merchant bankers has come to the notice of the government,'' Chidambaram said.