With worth manipulation changing into rampant in small-cap shares, the BSE has levied extra curbs on securities completely listed on its platform with market cap of lower than Rs 1,000 crore. The curbs will cowl solely scrips which might be a part of X, XT, Z, ZP, ZY and Y teams and quote at greater than Rs 10 per share and with a market capitalisation of lower than Rs 1,000 crore.
Under the brand new rule, the change has capped the upside and the draw back for a inventory throughout a selected time interval. The directive coincided with a decline within the small and midcap inventory, stoking fears that buyers and merchants have been panic promoting on account of the round.
The add-on worth bands might be along with the relevant each day worth bands of such securities. A safety positioned in add-on worth band will stay within the framework for a minimal interval of 30 calendar days and might be eligible to maneuver out if it doesn’t qualify the provisions of the above framework thereafter. Price manipulation is small shares are principally unnoticed and several other penny shares have been just lately manipulated by merchants for beneficial properties within the ongoing bull run, stated an analyst.
For the inventory to be put beneath watch, they should have moved both six instances within the final six months or 12 instances in as many months or 20 instances in two years or 30 instances in three years.
The new framework might be along with all different prevailing surveillance measures being imposed by the exchanges once in a while, the BSE stated. The new guidelines will come into impact from August 23, 2021.
VK Vijayakumar, chief funding strategist at Geojit Financial Services, stated, “BSE’s new surveillance framework with add-on price bands for specified stocks listed exclusively on BSE is a timely initiative to curb excessive speculative activity in these stocks.”