Leading bourses BSE and NSE will move five 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 2 of the Graded Surveillance Measure (GSM). BSE would move Pentokey Organy (India), Super Domestic Machines and Fraser And Company to Stage 2 of GSM, while NSE would place Farmax India under this mechanism.
Both the exchanges would also keep VKS Projects under enhanced surveillance.
In two separate but similarly-worded circulars, the exchanges said trading in the shares of these companies would be shifted to trade-to-trade segment category under Stage 2 of GSM from April 5.
The exchanges also said that Additional Surveillance Deposit (ASD) of 100 percent of trade value would be collected from the buyer. GSM framework has six stages and ASD, which is charged to the buyer of the transaction, becomes applicable from the second stage onwards.
According to the circulars, the applicable price band for the scrips would be 5 percent or lower.
Last month, the bourses had decided to keep more than 800 companies under GSM framework in order to check any abnormal rise in stock price that is not commensurate with the firms' financial health.
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