Siddharth Bhamre`s view on VIP Industries

Siddharth Bhamre, Angel Broking shares his view on VIP Industries.

Bhamre told CNBC-TV18, “According to MWPL, VIP Industries has only 109 crore. So the new eligibility criteria which is like you should have at least 200 crore that stock doesn’t suffice. Previously the eligibility criteria was 60 crore and that’s the reason VIP Industries was there. It is quite an active stock and you have kind of mix positions, so you would see lot of activity.”

He further added, “The main purpose which SEBI is doing this is to remove the element of speculation. There are lots of names in F&O segment where the liquidity is not that high and even in some of the stocks where MWPL is less and liquidity is high there are only selected few number of people who are active but retail participation or broad HNI participation is not there and few retail or few HNI who get into such stocks get trapped because of the actions taken by selected few. So that is the reason to curb this activity SEBI has taken this decision and I feel which is in larger interest and you would have few stocks in which you can trade the liquidity from this stock would then move to other stock and there would be a better price discovery. So I welcome this move taken by SEBI and this would suddenly ease lot of work for derivative analyst.”