New Delhi: To curb excessive volatility at mid and small closing counters, BSE has introduced the size of new supervision for certain shares that have market capitalization less than RS 1,000 Crore.
The new size, the band price frame add-on, will apply to companies with market capitalization less than RS 1,000 Crore and in securities in groups – X, XT, Z, ZP, ZY, and Y, BSE said in circular on Wednesday.
Under the framework, selected securities will be charged a periodic price limit for weekly, monthly and quarterly.
This additional price band will be an addition to the daily price ribbon that applies from these securities.
A new framework will come into force since August 23, the exchange said.
Security placed under the framework of the band price add-on will remain within a minimum framework of a 30-day calendar and will be eligible to move if it does not meet the requirements of the provisions of the framework after.
Exchange says that securities reviews are selected under the framework – inclusion or exception – will be carried out every month.
Furthermore, said that the selection of securities under a pure framework for market supervision and it should not be interpreted as an adverse action against the company concerned.
“In terms of corporate actions of material properties, such as rights issues, bonus problems, mergers, merger, takeovers etc.
The framework must apply to the new customized base price.
Furthermore, the exchange has identified an initial list of 31 securities in which the framework applies with Effects from August 23.
These companies include Ashiana Agro Industries Ltd, Cosmo Ferrites Ltd., Garware Synthetics Ltd., Saraswati Commercial India Ltd., Texel Industries Ltd, Siel Financial Services Ltd.