Podcast
Questions and Answers
What action does the Exchange take when the aggregate open interest exceeds 95% of the market wide position limit for a scrip?
What action does the Exchange take when the aggregate open interest exceeds 95% of the market wide position limit for a scrip?
- Resumes normal trading in the scrip
- Imposes a trading halt in the scrip
- Takes note of open positions of all clients/TMs and allows them to trade only to decrease their positions (correct)
- Takes note of open positions of all clients/TMs and allows them to increase their positions
What is the primary objective of the Securities Contracts (Regulation) Act, 1956?
What is the primary objective of the Securities Contracts (Regulation) Act, 1956?
- To govern the trading of securities in international markets
- To prevent undesirable transactions in securities (correct)
- To promote undesirable transactions in securities
- To regulate the stock exchanges in India
What is the criterion for resuming normal trading in a scrip?
What is the criterion for resuming normal trading in a scrip?
- When the open interest is zero
- When the aggregate open interest comes down to 80% or below of the market wide position limit (correct)
- When the aggregate open interest exceeds 100% of the market wide position limit
- When the aggregate open interest comes down to 90% of the market wide position limit
What is disseminated by the Exchange at the end of each day?
What is disseminated by the Exchange at the end of each day?
What is defined in Section 2(h) of the SCRA?
What is defined in Section 2(h) of the SCRA?
What happens when the Exchange finds that the aggregate open interest exceeds 95% of the market wide position limit for a scrip?
What happens when the Exchange finds that the aggregate open interest exceeds 95% of the market wide position limit for a scrip?
What is the market wide position limit related to?
What is the market wide position limit related to?
What is the purpose of the Exchange disseminating the aggregate open interest?
What is the purpose of the Exchange disseminating the aggregate open interest?
What is governed by the Securities Contracts (Regulation) Act, 1956?
What is governed by the Securities Contracts (Regulation) Act, 1956?
What is the consequence of the aggregate open interest exceeding 95% of the market wide position limit?
What is the consequence of the aggregate open interest exceeding 95% of the market wide position limit?
