Mumbai: Markets watchdog Sebi today said the stock exchanges are prepared to deal with “any irregularity” in trading tomorrow, when the results for the 2014 Lok Sabha elections are to be announced. “We want to assure investors that we are prepared for any eventuality and if anyone indulges in any irregularity in the market, we are fully prepared for that,” Sebi Chairman UK Sinha told reporters on the sidelines of an Assocham conference here.
“Sebi along with the Reserve Bank and the government, has prepared a strategy for any unusual market movement. We have all the rules in place. So the exchanges will act accordingly, if anything unusual happens. We are conducting stress-tests for markets on a daily basis,” Sinha added. In the last two elections, stocks had reacted sharply after results were announced, triggering circuit-breakers.
While in 2004, the markets tanked after the NDA was voted out, in 2009 the market hit circuit breakers many times on the day of counting after the UPA was voted back to power. The Sensex on May 18, 2009 hit the upper circuit within 30 seconds of the market opening for the first time after the results were declared, and trading was halted for two hours.
The indices again hit the upper circuit within minutes of the markets re-opening, and trading was called off for the day.
On May 14, 2004, when the Congress-led UPA emerged the surprise winner in the general elections, the Sensex fell as much as 6.1 per cent and plunged another 11.14 per cent the next day.