BSE auctions 38,000 shares of Akruti City

Nearly 38,000 shares of Akruti City have been auctioned by the Bombay Stock Exchange (BSE) since March 16, when the real-estate firm’s stock rose significantly. The National Stock Exchange (NSE) too has frozen 18,000 shares of the firm to confirm genuineness of the trade order.

BSE auctions shares when either the seller or the buyer defaults on his commitment to complete the trade. On its part, NSE freezes orders that are 1 per cent and above of the stock’s issue size, or if the value of the order is around Rs 5 crore, to confirm its authenticity.

According to market players, the default ratio is high as short-sellers were trapped badly in the Akruti counter. “While players could not do much in Akruti in the futures and options (F&O) side as the stock was in curbs, they tried shorting the share in the cash segment. However, when it still kept rising and its price doubled in a week’s time, not many were able to take delivery and defaulted,” said the head of a Mumbai-based brokerage.

Akruti will be kept out of F&O and the share will be traded in the trade-to-trade segment on both BSE and NSE after March 26.