BSE, NSE to keep nine cos under enhanced surveillance

As part of efforts to safeguard interest of investors in the capital market, leading exchanges BSE and NSE will move nine companies to the restricted trading category and keep them under enhanced surveillance from tomorrow.

Shares of these companies would be moved to the trade- to-trade segment under Stage 1 of the Graded Surveillance Measure (GSM).

In the Stage 1, the scrip is moved to the "trade for trade" segment with the permitted price band of five per cent or lower as applicable.

While both the exchanges will move Accel Frontline to Stage 1 of GSM, BSE alone would transfer Abhishek Infraventures, Bronze Trading, Chennai Meenakshi Multispecial, Combat Drugs, Foundry Fuel Products, I-Power Solutions India, Regency Investments and Telecanor Global under the mechanism.

In two separate circulars, the exchanges said that the scrips will be moved to Stage 1 of GSM with effect from April 28.

The bourses have asked members to take "adequate precaution" while trading in the shares of these firms, as the settlement would be done on trade-to-trade basis and no netting off would be allowed.

Last month, BSE and NSE had decided to keep more than 800 companies under GSM framework in order to check any abnormal rise in stock price that does not commensurate with the firms' financial health.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)