Leading exchange BSE
will, from Monday, ease the surveillance
action taken against 64 firms, the price movements of which were not commensurate with their financial health.
too will relax such action taken against nine firms.
All these firms were put under the Graded Surveillance
Measures (GSM) framework to keep a tab on unusual price movements that are not in tune with their financial health.
After a periodic review, the exchanges have decided to ease the GSM actions initiated against some companies starting from on Monday, as per separate circulars issued last week.
As many as 64 firms will be moved by the BSE
to lower levels of the GSM framework
while the NSE
will make a similar move with respect to nine companies.
In March, the two exchanges had named more than 800 firms under the GSM, which has six stages with different levels of surveillance
While some firms will be moved from Stage III of the GSM to Stage II, others will be shifted from Stage II to Stage I.
The companies against whom the surveillance
actions will be relaxed include Blue Chip India, Alka Securities, Colinz Laboratories, India
Lease Development and Ventura Textiles.
The action will be effective from July 10, as per the separate circulars issued by the BSE
and the NSE.
In Stage I of the GSM, the scrip is transferred to the trade for trade segment with an applicable price band of 5 per cent or lower. In Stage II, there is the additional requirement of Additional Surveillance
Deposit (ASD) of 100 per cent of trade value to be collected from the buyer of the particular scrip.
Trading is permitted once a week on every Monday and ASD
of 100 per cent of trade value has to be deposited by the buyer for shares kept in Stage III.
A periodic quarterly review of firms under various GSM stages is carried out based on pre-defined criteria and if qualified, the applicable companies are moved back from higher stage to lower stage in a sequential manner.
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