Sebi writes to states to exempt staff of capital market entities from lockdown

Sebi writes to states to exempt staff of capital market entities from lockdown

Entities like stock exchanges, clearing corporations, mutual funds will be exempt.

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MUMBAI: The Securities and Exchange Board of India (Sebi) said on Wednesday that it has written to all states and union territories to exempt the staff of notified entities from the nationwide 21-day lockdown.

“Stock market operations are to be in line with the Orders of Government of India and State Governments and SEBI Notifications,” Sebi said in a release.

“Today SEBI has written to Chief Secretaries/Administrators of all States/UTs, requesting them to facilitate the functioning and movement of personnel of entities notified by SEBI for the smooth operation of the capital markets,” it added.

Addressing the nation for the second time in less than a week, Prime Minister Narendra Modi on Tuesday called for a nationwide lockdown starting midnight to contain the novel coronavirus. The duration of the lockdown will be 21 days. Providing a rationale behind this major step, Modi said that it was necessitated due to the severity of the situation.

The government clarified that all essential services will remain functional. Sebi said late on Tuesday that the order will exempt capital and debt market services.

“The order inter alia provides that commercial and private establishments shall be closed down but that the capital and debt market service as notified by the Securities and Exchange Board of India shall be exempted from such closures,” the market regulator has said.

It notified that entities such as stock exchanges, clearing corporations, depositories, custodians, mutual funds, stock brokers, trading members, credit rating agencies, foreign portfolio managers, portfolio managers, investment advisers, alternate investment funds (AIFs) will be exempt among other such entities.

Brokers and their staff have raised complaints that they have been stopped from commuting to work by the police, and it has been impacting their operations.

Source- Economic Times.