Leading stock exchanges BSE and NSE will shift several scrips to the restricted trading segment from Thursday to ensure safety of investors in the capital markets.
BSE will shift as many as 30 stocks, including McDowell Holdings, Emami Realty, United Van Der Horst, Hindustan Everest Tools, Technofab Engineering and Lactose India, to the trade-for-trade segment represented by T or XT groups.
At the same time, NSE would transfer 13 scrips to the trade-for-trade segment segment on its platform.
In this segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.
With a view to take preventive surveillance measure to ensure market safety and safeguard the interest of the investors, BSE and NSE have decided to move shares of these companies to T or XT Group with effect from January 30.
In separate notices, the exchanges have asked their members “to take adequate precaution” while trading in these stocks “as the settlement will be done on trade-to-trade basis and no netting off of positions will be allowed”.
Further, value at risk margin of 100 per cent will also be levied on these scrips
The decision with respect to these securities is part of a surveillance review, the exchanges said.
They said the transfer of security for trading and settlement on a trade-to-trade basis “is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company”.
These stocks would attract a circuit filter of up to 5 per cent which would be the maximum permissible limit within which the share price can move.
In a separate statement, BSE said it has registered trading volume of 77,100 barrels with an open interest of 10,400 barrels, on the first day of Brent crude oil futures trading on Tuesday.
The bourse began trading in futures contracts of Brent Crude Oil from January 27.
The exchange will use Intercontinental Exchange’s Brent Index as the final settlement price for its rupee-denominated Brent futures contract.
“BSE is dedicated to deepen the Indian commodity markets by providing traders, investors and all market participants convenient and cost effective onshore hedging products.
“We believe that this contract will be widely accepted by all stakeholders and emerge as a preferred risk mitigating tool of all stakeholders,” BSE Chief Business Officer Sameer Patil said.
Brent crude is highly co-related with the Indian crude oil basket and the BSE Brent crude contracts are designed to protect stakeholders from oil market uncertainties.
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