COVID-19 impact: Stock exchanges measure up to challenge

Mumbai, March 19 (IANS) There is no threat from COVID-19 to the equity trade in the country, as the country’s benchmark stock exchanges have initiated a number of measures for trade continuity and to safeguard their employees.

To measure up to the challenge, stock exchange major, the Bombay Stock Exchange (BSE) has said that over 50 per cent of its employees are currently working from home and that it has a robust trade continuity plans.

On its part, stock exchange major NSE has issued an advisory on the basis of the role of the employees.

“Employees have been put into two categories — one who can work from home and others within functions who need to come to the exchange and work from the office premises,” an NSE official said.

“This will not only ensure smooth functioning of the exchange, it is also a step to ensure the well-being of the entire exchange employees.”

Meanwhile, several industry insiders have suggested various ways to curb the market volatility which is at one of its highest levels.

On Wednesday, India’s volatility index (VIX) jumped 2.5 per cent further to 64.5 level, its highest in over a decade.

Some traders have gone as far as to suggest that markets should be temporality close for some days.

“Rather than closing down the market, the most simplest thing to do is to ban short selling,” said a trader.

“Many countries including China has done this effectively.”

However, many have countered this point by saying that its akin to curbing the 95 per cent volume of the market.

Lately, the Indian equity markets have seen massive volumes which has eroded thousands of crores of investors wealth.

Currently, investors are spooked with the rise of COVID-19 infections in India and its economic fallout globally.

–IANS

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