Illiquid shares are these that can’t be offered simply as a result of they see restricted buying and selling. These shares pose increased dangers to investors as a result of it’s tough to discover patrons for them as in contrast to regularly traded shares.
In similar-worded circulars issued on Wednesday, each exchanges suggested their buying and selling members “to exercise additional due diligence while trading in these securities either on own account or on behalf of their clients”.
BSE and NSE have listed out 299 and 13 illiquid shares, respectively, the place extra due diligence is required.
Illiquid scrips listed by BSE embody Garware Marine Industries Ltd, Mefcom Capital Markets Ltd, Ekam Leasing & Finance Company Ltd, Maruti Securities Ltd, Bangalore Fort Farms Ltd, Gujarat Investa Ltd, Golechha Global Finance Ltd, Vertex Securities Ltd, Munoth Financial Services Ltd and Indo Asia Finance Ltd.
The 13 shares recognized by NSE are: Bkm Industries, BSEL Infrastructure Realty, Creative Eye, Eurotex Industries and Exports, Grand Foundry, Gujarat Lease Financing, GTN Textiles, Hotel Rugby, Kaushalya Infrastructure Development Corporation, Nagreeka Capital & Infrastructure, Norben Tea & Exports, Neueon Towers and TCI Finance.
Based on the buying and selling exercise through the interval October 1, 2020 to March 31, 2021, these scrips which will probably be traded in periodic name public sale mechanism from April 12, 2021, the exchanges stated in circulars.
The standards for shifting securities in periodic name public sale mechanism is determined in session with Securities and Exchange Board of India (Sebi) and utilized uniformly throughout the inventory exchanges and reviewed periodically.
In December 2014, the market regulator had relaxed norms for buying and selling in illiquid shares. The transfer was aimed toward shifting numerous illiquid scrips to regular buying and selling session from the periodic name public sale, the window the place these shares are at present traded.