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Exchanges revise enhanced surveillance measures for micro small cap cos
Leading stock exchanges BSE and NSE have relaxed enhanced surveillance measures (ESM) framework for micro small cap companies that have a market cap of less than Rs 500 crore.
This came over a month after rules were put in place by the bourses to curb volatility in the counters of such firms.
The new framework would be applicable from July 24, according to circulars issued by the exchanges on Tuesday.
Earlier, the stocks under ESM Stage-II were permitted to trade only once a week under the periodic call auction. Now, this has been revised to all trading days.
"Trading permitted with +/- 2 per cent price band on all trading days under periodic call auction," the exchanges said.
However, the norms of 100 per cent margin and trade-for-trade settlement remain unchanged. Besides, rules remain unchanged for stocks that remain under ESM Stage-I.
"In joint discussion of exchanges and Sebi, the current surveillance actions under the ESM framework were reviewed," the circulars noted.
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