InvestorQ : Does SEBI have a role to play when markets are very volatile or correct too sharply?
Khushi Patel made post

Does SEBI have a role to play when markets are very volatile or correct too sharply?

Answer
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Anjana Aiyar answered.
1 year ago


Normally SEBI does not interfere with the normal functioning of the market. Up-moves and down-moves are normal in any market. However, SEBI gets involved in a couple of instances. Firstly, when the markets are falling and there is panic that there could be defaults, then SEBI may intervene and get key parties together to find a solution to the problem. Secondly, where SEBI feels through its surveillance and data gathering that the unusual movements in the market are an outcome of manipulation, then SEBI may intervene.