To curb extreme volatility in mid and small-cap counters, the BSE has launched a brand new surveillance measure for sure shares having a market capitalization of lower than Rs 1,000 crore.
The brand new measure, add-on worth band framework, can be relevant to firms with a market-capitalization of lower than Rs 1,000 crore and on securities in teams — X, XT, Z, ZP, ZY, and Y, BSE stated in around on Wednesday.
Beneath the framework, the shortlisted securities can be subjected to further periodic worth limits of weekly, month-to-month, and quarterly.
These add-on worth bands can be along with the relevant every day worth bands of such securities. The brand new framework will come into impact from August 23, the trade stated.
A safety positioned beneath the add-on worth band framework will stay within the framework for a minimal interval of 30 calendar days and can be eligible to maneuver out if it doesn’t qualify the provisions of the framework thereafter.
The trade stated that assessment of the shortlisted securities beneath the framework — inclusion or exclusion — can be carried out on a month-to-month foundation.
It additionally stated that shortlisting of securities beneath framework is only on account of market surveillance and it shouldn’t be construed as an antagonistic motion towards the involved firm.
“In case of company actions of a cloth nature, like rights concern, bonus concern, merger, amalgamation, takeover, and many others. the framework shall be relevant on the brand new adjusted base worth.
Additionally, the trade has recognized a preliminary record of 31 securities on which the framework can be relevant with impact from August 23.
These firms embody Ashiana Agro Industries Ltd, Cosmo Ferrites Ltd, Garware Synthetics Ltd, Saraswati Business India Ltd, Texel Industries Ltd, Siel Monetary Companies Ltd, and Pan Electronics India Ltd.