BSE, NSE announce additional surveillance measures for SME stocks

PTI, Sep 26, 2023, 9:59 AM IST

Image source: PTI / File

Leading stock exchanges BSE and NSE on Monday said that stocks in the small and medium enterprises (SME) segment will come under the framework of Additional Surveillance Measures (ASM) and trade-to-trade settlement to curb volatility in such shares.

The move is aimed at curbing speculative trading in the SME space, where retail participation has been increasing.

In a joint surveillance meeting of exchanges and market regulator Securities and Exchange Board of India (Sebi), it has been decided that the short-term ASM framework and trade-for-trade framework will be extended to SME stocks subject to certain changes, according to circulars issued by BSE and NSE.

A stock can be placed under additional surveillance measure in case it falls under a certain basis including high variation between high and low prices and variation in volumes as compared to the monthly average. Moreover, such shares attract higher margin requirements.

In the trade-for-trade (TFT) framework, speculative trading is not allowed and delivery of shares and payment of consideration amount is mandatory. ”TFT framework shall be in conjunction with all other prevailing surveillance measures being imposed by the exchanges from time to time,” the exchanges said.

Further, they said that shortlisting securities under TFT would be purely on account of market surveillance, and it should not be construed as an adverse action against the concerned company or entity.

The new frameworks will be made available by October 3, the circulars noted.

The Sebi and exchanges, in a bid to enhance market integrity and safeguard the interests of investors, have been introducing various enhanced pre-emptive surveillance measures from time to time.

Earlier, the exchanges put in place an enhanced surveillance mechanism for companies that have a market cap of less than Rs 500 crore.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Sirsi: 4 of a family from Mangaluru among 5 persons killed in bus-car collision

Modi’s guarantee that every penny ‘looted’ from people will have to be returned: PM

‘Fighter’ teaser released, ‘leaves a solid impact’!

On Day 3 of I-T raid in Odisha distillery, 156 bags of cash found; Rs 20cr counted so far

Mysuru: Nepalese woman, her 2 children kept as bonded labour, rescued

Bengaluru: Jilted lover dies by self-immolation at girlfriend’s house

Hunter Biden indicted on nine tax charges, adding to gun charges in special counsel probe

Related Articles More

UPI users can transfer upto Rs 5 lakhs to hospitals, educational institutes soon, says RBI

“We are actively disinflationary”: RBI keeps repo rate unchanged at 6.5% for fifth time in a row

Sensex rises 120 pts ahead of RBI policy review

In Instagram post, Ratan Tata flags fake interview recommending investments

SC restores cheating case against fugitive businessman Mehul Choksi & his wife


Michaung cyclone at TM

Human immunodeficiency viruses

A famous hotel at Gurupura


Halalban by Uttarapradesh government

Latest Additions

Opposition leaders question LS ethics panel report recommending expulsion of TMC’s Mahua Moitra

Sirsi: 4 of a family from Mangaluru among 5 persons killed in bus-car collision

Modi’s guarantee that every penny ‘looted’ from people will have to be returned: PM

Misconduct on and off the field will dealt strictly, says LLC following Gambhir-Sreesanth spat

Bengaluru: Man loses Rs 18 lakh in investment scam

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.