Illiquid Stocks: Both exchanges in their circulars have advised trading members to conduct additional investigations on trading in these securities on their own or on behalf of their clients.
Place bets carefully in 300 companies
If you invest in stocks, then this news is for you. To protect the interests of investors, the major stock markets BSE and NSE have asked their trading members to take extra precautions while trading in more than 300 Illiquid Stocks. Both exchanges in their circulars have advised trading members to conduct additional investigations on trading in these securities on their own or on behalf of their clients.
What are Illiquid Stocks? – Explain that illiquid stocks are stocks that cannot be sold easily because there is limited trading in it. These stocks are more risky for investors as it is often difficult for them to find buyers as compared to trades. Investing in these stocks can get your money stuck or drowned.
Carefully place bets in these companies
BSE and NSE have listed 299 and 13 illiquid stocks respectively, where additional monitoring is required. Illiquid scrips listed by BSE include Garware Marine Industries Ltd, Mefcom Capital Markets Ltd, Ekam Leasing & Finance Company Ltd, Maruti Securities Ltd ), Bangalore Fort Farms Ltd, Gujarat Investa Ltd, Golechha Global Finance Ltd, Vertex Securities Ltd, Munoth Financial Services Ltd ) And Indo Asia Finance Ltd.
Among 13 stocks identified by NSE are BKM Industries, BSEL Infrastructure Realty, Creative Eye, Creative Eye, Eurotex Industries and Exports, Grand Foundry, Gujarat Lease Financing (Gujarat Lease Financing), GTN Textiles, Hotel Rugby, Kaushalya Infrastructure Development Corporation, Nagrikka Capital & Infrastructure, Norben Tea & Exports & Exports), Neonon Towers and TCI Finance.
There will be trade in periodic call auction mechanism
The exchanges said in a circular that these stocks will be traded in the periodic call auction mechanism from April 12, 2021, depending on the trading activity during October 1, 2020 to March 31, 2021. The criteria for transferring securities to the periodic call auction mechanism has been fixed in consultation with the Securities and Exchange Board of India (Sebi) and applied uniformly across the stock exchanges and reviewed from time to time. In December 2014, the market regulator relaxed norms for trading in these stocks.
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