It will be a long trading day. The rules of the game have just been changed quite dramatically. They have not been enforced yet, it’s a draft, which may send shivers down the spine of the market this morning.
When was the last time we had a circuit down market?
10 per cent - hopefully, it may not come to that, but it just may. The way this has been articulated, there is at least a 50 per cent possibility that the market at some point in the day goes close to that circuit.
The whole reason for this market going up was ample liquidity and that might have just seen a big reversal with the draft, which Sebi has proposed last evening.
The rules of the game have changed and one need not look at any other cue now.
This is the most important thing this morning. If one is a market participant, one needs to understand what Sebi has said and what the guidelines are and whether they will be tweaked and what impact it has on the market.
The draft comes with many modalities and therefore Sebi has given it much thought. It isn't a half-baked plan on the part of Sebi, they would want to implement as much as possible.
However, the hope is that in the next four days people come out with candid feedback. It is a contentious issue that the guy who shouts the most is probably going to be seen as a regulator, as the guy who probably has the most the hide and therefore people may be a little restrained with their feedback.
I hope Sebi means it when it says that it will not go ahead with this, it is only pending feedback from market participants and if the feedback is good then they are open, they have an open mind to tweak it. I hope that is the case and it is not a done deal and they have just put it out for discussion, but the fourth day from now it would be implemented in its current form.
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