Illiquid stocks are the ones which cannot be sold easily because they see limited trading. These stocks pose higher risks to investors because it is difficult to find buyers for them as compared to frequently traded shares.
In similar-worded circulars, both the exchanges advised their trading members "to exercise additional due diligence while trading in these securities either on own account or on behalf of their clients."
Illiquid scrips listed by both the exchanges, include Bilpower, Creative Eye, Euro Multivision, GI Engineering Solutions, Jaihind Projects, Usha Martin Education & Solutions, Quintegra Solutions and Radaan Mediaworks India Ltd.
These scrips will be traded in periodic call auction mechanism from April 9, the exchanges noted.
In December 2014, Sebi had relaxed the norms for trading in illiquid stocks. The move was aimed at shifting various illiquid scrips to normal trading session from the periodic call auction, the window where these stocks are currently traded.
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