BSE to exclude 52 stocks from trading in SLB segment

Securities Lending and Borrowing mechanism allows short sellers to borrow securities for making delivery

The BSE today said it will exclude 52 stocks including Oil India, Essar Oil and MRPL from trading in Securities Lending and Borrowing (SLB) segment with effect from September 28.

The Securities Lending and Borrowing (SLB) mechanism allows short sellers to borrow securities for making delivery.

Among other stocks, BEML, Bharat Electronics, Bosch, Fortis Healthcare, HCC, Jet Airways SpiceJet, TVS Motor Company, Tata Teleservices (Maharashtra) Ltd, Indian Bank and Max India, would not be available for trading in the SLB segment with effect from September 28, 2012, BSE said in a circular.

"...52 securities have ceased to fulfill eligibility criteria...(thsese) scrips shall not be available for trading in the SLB Segment with effect from September 28, 2012," the BSE said.

The National Stock Exchange had last week removed 51 stocks from its derivative segment.

Under SLB, securities can be borrowed for a period of seven days through a screen based order matching mechanism. The stocks in the future & option segment are eligible for SLB.

These announcement came after market regulator Sebi had hiked the benchmark liquidity level for scrips to be eligible for trading in the derivatives segments. The move was aimed at checking any manipulation by doing away with illiquid stocks.

Last week, Sebi had said the minimum Median Quarter Sigma Order Size (MQSOS) requirement for introduction in derivatives segment has been revised to Rs 10 lakh, from Rs 5 lakh at present. MQSOS indicates liquidity, or order size in a scrip.

Also the MWPL (market-wide position limit), indicating the size of the company, has been raised to Rs 300 crore, from Rs 100 crore.