Bombay Stock Exchange (BSE) has introduced a new surveillance measure for certain stocks having a market capitalization of less than Rs 1,000 crore to curb excessive volatility in mid and small-cap counters. The new measure, add-on price band framework, will be applicable to companies with a market-capitalization of less than Rs 1,000 crore and on securities in groups -- X, XT, Z, ZP, ZY, and Y.
Under the framework, the shortlisted securities will be subjected to additional periodic price limits of weekly, monthly, and quarterly. These add-on price bands will be in addition to the applicable daily price bands of such securities. The new framework will come into effect from August 23.
BSE provides an efficient and transparent market for trading in equity, debt instruments, derivatives, mutual funds. It also has a platform for trading in equities of small-and-medium enterprises (SME).
