Investor wealth of Rs 15.8 billion riding on stocks under Sebi lens

Sebi's decision to move over 100 stocks to additional surveillance measure (ASM) is being termed as harsh by market players. Investors' wealth amounting to Rs 15.8 billion is riding on these stocks. Among individual stocks, mutual funds (MFs) have high stakes in names like Graphite India, Dilip Buildcon and Radico Khaitan.

Together, these three stocks account for Rs 18.5 billion of MF money. In the case of foreign investors, Rs 25.7 billion is riding on HEG, Rain Industries and Soril Holdings. While on an absolute basis the amount is not high, investors fear the strict criteria for trading stocks under ASM will dry up liquidity and force them to sell shares at lower valuations.

For stocks under ASM, trading members have to provide 100 per cent margin money. Also, certain stocks are allowed to trade in a narrow band of 5 per cent with compulsory delivery based trading.