The Effectiveness of Price Bands on Emerging Markets: Evidence from India

Chakrapani Chaturvedula, Nikhil Rastogi

Abstract


We study the impact of price bands in the Indian capital markets and following the methodology of Kim and Rhee (1997) we do not find evidence in support of the volatility spillover hypothesis. Our evidence suggests that price limits does not hinder the price discovery process and may play an important role in reducing the volatility of stock prices in the emerging markets like India.


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DOI: https://doi.org/10.5430/afr.v7n4p195

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