Worried over the fate of stocks put under the regulator's additional surveillance measure or ASM, panic sell-off by investors has driven the market prices of these stocks lower by 5-20% in last few sessions.
The additional surveillance is put in place to check any price-volume manipulation or abnormal price rise that is not in sync with financial health or fundamentals of the company.
After the initial order to put as many as 37 securities in the ASM list, BSE has upped the number to include a total of 109 companies including the likes of HEG, R- Naval, Apex Frozen, Radico Khaitan, Amtek Auto, Bombay Dyeing, Electrosteel Steels, Graphite India, GVK Power, Indiabulls Ventures, Jaypee Infratech, Rain Industries, Sterling Biotech, Talwalkars Better Value Fitness and Venkys (India).
It is to be noted that the exchange said that the measure should not understood as some adverse action taken against the companies. Also, circuit breaker of 5% becomes applicable for such companies i.e there can be a maximum upward or downward price movement of up to 5% with effect from June 5, 2018.
Further, buyers need to pay upfront the full amount to brokers for taking holding of such scrips. With this measure in place, the already beaten down mid-cap index has taken a hit due to the liquidity concerns and additional sell-off pressure.