With reference to the Circuit breaker in trading considers the following statements It is implemente...........

Indian Economic System(CSC) Financial System

With reference to the Circuit breaker in trading, considers the following statements

Select the correct statement.

1 only

2 only

Both

None

Recently after the Hindenburg revelations, many of the Adani Group companies’ stocks have hit the lower circuits in subsequent trading sessions.

The Securities and Exchange Board of India (SEBI) implemented index-based market-wide circuit breakers in June 2001.
Circuit breakers are triggered to prevent markets from crashing due to a panic-induced sale of stocks.
This can occur for a variety of reasons, leading to stockholders in the market believing that their stocks are overvalued. As a result, they engage in a sell-off.
Circuit breakers temporarily halt trading, thereby halting the sell-off.
Circuit-breakers effectively limit how much a stock's value can fall in a single day/trading session, resulting in a more stable market overall.

Hence both statements are correct.