BSE clarifies on new surveillance steps

BSE Ltd on Wednesday said its new surveillance rules will be restricted to only certain stocks as it sought to soothe investor nerves rattled by its previous circular that triggered a sell-off in small and mid-cap stocks.

The new rules will be imposed on only securities that meet specific criteria and will be effective from August 23, the Mumbai-based stock exchange

MUMBAI:

said in a clarification to its circular issued earlier this week.

BSE said the new framework is applicable to Bse-exclusive securities in groups such as X, XT, Z, ZP, ZY, Y. The new rules will apply to securities priced at ₹10 and above as on review date, while the market capitalization should be less than ₹1,000 crore.

“Accordingly, the shortlisted securities shall have 6 monthly, 1 yearly, 2 yearly and 3 yearly price band in place of weekly, monthly, quarterly price band,”

BSE said in its circular.

Securities placed in the add-on price band framework will stay in the framework for at least 30 days and will be eligible to move out only if it does not meet the new surveillance measures thereafter, BSE said. It said a review of the shortlisted securities such as inclusion or exclusion will be carried out on a monthly basis, and the add-on price bands will be in addition to the applicable daily price bands of such securities.

In case of corporate actions of a material nature like rights issue, bonus issue, merger, amalgamation and takeover, the rules will be applicable on the new adjusted base price.

The circular said exchanges in consultation with the Securities and Exchange Board of India introduced surveillance measures such as graded surveillance measures , additional surveillance measures, shortterm additional surveillance measures (ST-ASM) and tradefor-trade (TT).