For Quick Alerts
For Daily Alerts

60 Companies Facing Insolvency To Come Under Additional Surveillance From June 11


National Stock Exchange has come up with a list of 60 companies currently facing insolvency proceedings as per the Insolvency and Bankruptcy Code to be put under the additional surveillance scanner from June 11.

In a circular the country's largest bourse said that, "The aforesaid securities shall be monitored on a pre-determined objective criteria and margin shall be levied at the rate of 100 percent once the criteria gets satisfied". Also, it said, "these securities shall be further monitored for an objective criteria and shall be shifted to Trade-to-Trade segment once the criteria gets satisfied."

NSE Adds 60 Companies Facing Insolvency Under Additional Surveillance

Some of the companies to be included in the ASM list by NSE include ABG Shipyard, Adhunik Metalliks, Amtek Auto, Assam Company India, Bhushan Steel, Educomp Solutions, Eletcrosteel Steels, Era Infra Enginnering, Gujarat NRE Coke etc.

In March this year, the market regulator SEBI and stock exchanges introduced additional or enhanced surveillance measures to check any abnormal increase in stock price that is not commensurate with the fundamentals of the company.

The surveillance measure by the NSE comes days after BSE put some 109 companies under the ASM scanner. At the same time, the exchange said that the step should not be taken as some adverse action against such firms.

Further, it should be noted that the additional surveillance measures will work in conjunction with other surveillance steps invoked from time to time by stock exchanges.

Some of the criteria to spot companies to be put under ASM include volatility in the share price, number of times the scrip hits circuit filters and shareholding concentration.

There was seen a panic selling in mid cap counters which resulted in sharp price fall in stock prices of scrips put under ASM.

Story first published: Saturday, June 9, 2018, 17:18 [IST]
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more