New Delhi: Stepping up efforts to curb excess volatility, the Bombay Stock Exchange (BSE) will place 52 companies traded on it under “S+" framework from Wednesday. The “S+" framework, put in place by the BSE last week, is for enhanced monitoring of firms that are exclusively traded on its main board and do not come under the ambit of graded surveillance measures.
Under this framework, scrips concerned are placed in two categories—those being settled on normal rolling basis would be under the SS group whereas shares settled on trade to trade basis would be under the ST group. The companies shortlisted under the “S+" framework would be moved to SS or ST group from 14 June, the BSE said in a notice. Of the 52 firms to be placed under the latest framework, 23 would be in the SS group and the rest in the ST group.
The firms to be moved to the SS group include Alfa Transformers Ltd, Aplaya Creations Ltd, Blue Circle Services Ltd, Camson Bio Technologies Ltd, Gold Coin Health Foods Ltd, Monotype India Ltd, Pritika Auto Industries Ltd and Prabhav Industries Ltd. Among the companies to placed under the ST group are ARC Finance Ltd, Blue Pearl Texspin Ltd, Dhanvarsha Finvest Ltd, Gujarat Credit Corporation Ltd, India Home Loan Ltd, Kushal Tradelink Ltd, Midas Infra Trade Ltd, Prag Bosimi Synthetics Ltd, Sword & Shield Pharma Ltd and Yuken India Ltd.
Restrictions under the “S+" framework include imposition of weekly and monthly price bands in addition to existing daily, quarterly and yearly price bands and imposition of very high transaction charges. “Market participants may note that ‘S+’ framework shall be in conjunction with all other prevailing surveillance measures being imposed by the exchanges from time to time," the BSE said in a notice last week.
Members are advised to exercise additional due diligence while trading in these securities either on own account or on behalf of their clients, it added.