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NSE identifies five companies for surveillance action

Apr 3, 2020, 17:06 IST
PTI
New Delhi, Apr 3 () The National Stock Exchange has shortlisted five companies, including Infrastructure and Torrent Pharmaceuticals, with higher levels of pledged shares by promoters for surveillance action.

The exchange will levy a minimum margin of 35 per cent on the respective shares, including on stocks in the derivatives segment.

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Max India, DCM Shriram and Jindal Stainless are the other three companies identified for surveillance action, according to a circular dated April 1.

"The applicable rate of margin in equity and equity derivatives segment shall be 35 per cent or existing margin, whichever is higher with effect from April 8 on all open positions as on April 7 and new positions created from April 7," the bourse said.

In addition, the exchange has dropped six companies from surveillance action category for having higher levels of pledged shares by promoters.

These firms are - Future Supply Chain Solutions, Dish TV India, Hindustan Construction Company, Shree Renuka Sugars, Jindal Stainless (Hisar) Ltd, Sterling and Wilson Solar.

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It also noted that shortlisting of securities under this surveillance measure is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company.

In October, stock exchanges had decided to take additional surveillance measures from November 1 in order to reduce volatility in stocks having higher levels of pledged shares by their promoters.

Under the framework, the exchanges would levy minimum margin of 35 per cent on the stock (including stocks in derivatives segment) where promoters pledged their holding by more than 25 per cent of the total equity capital and have a market capitalisation of over Rs 1,000 crore. SP BALBAL

(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)
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