Bull run at the markets: All T-group stocks in placed in price band from today
21 Sep 2005
Mumbai: In a bid to check the unabated bull run in the markets, stock exchanges have tightened the price band mechanism to curb abnormal movements in share prices. All trade-to-trade (T-group) and penny stocks have been placed under five per cent price band from Wednesday.
In the T-group, trades in shares will be allowed only on payment and delivery basis. With this change, more than 1,000 out of some 2,500 stocks traded daily on the BSE will come under the five per cent price band.
On the NSE, more than 125 stocks out of an average of 750 stocks traded will figure in this price band. The NSE said that till now it has shifted 239 stocks to the T-group in the last few months.
In addition, the exchanges have also brought 39 securities that had no price band so far, under the 20 per cent price band from Wednesday.
The exchanges are also moving more securities to the T-group in order to avoid excessive speculation. They are also suspending trading in securities not complying with listing agreements.
From Friday, the BSE has shifted 53 securities while the NSE has shifted eight more stocks. In order to avoid excessive speculation in companies not complying with the listing norms, the BSE has suspended trading in 39 stocks from Thursday, as they have not paid the listing fee for the current fiscal.
The NSE in a statement said that till now it has suspended 124 companies for non-compliance of the listing agreement. It has also suspended trading in three companies and issued show cause notice to 13 companies for non-compliance with the provisions of the listing agreement.