Ses Told To Set Limits For Illiquid Stocks

The regulator has also said that exchanges should implement a price filter, whereby, on a weekly basis, the price movement will not exceed 25 per cent (on either side) for stocks. This would apply for all stocks which are being traded at an above par value. These steps have been taken to beef up the surveillance mechanism at the stock exchanges.

The meeting was attended by BSE executive director R C Mathur, NSE deputy managing director Ravi Narain, M L Soneji, ED, Ahmedabad Stock Exchange, Joseph Massey, ED, Vadodara SE and senior officials of the Pune SE, officials of the Delhi Stock Exchange and Ajeet Prasad, managing director, OTC Exchange of India.

 

The group has also agreed to formulate, along with Sebi's own surveillance team, the parameters for a StockWatch type of surveillance system for SEs which have gone on-line. This would provide details relating to differences in trading pattern of stocks, volume of trade, besides the price movements.

Sebi has also clarified doubts regarding mark-to-market margin systems. Said Sebi senior executive director O P Gahrotra said: