In partial modification and supersession of the Exchange circular no. 20210809-41 dated August 09, 2021, on the captioned subject, the following clarifications are being provided to simplify the understanding and implementation of the framework.
1. The said framework is applicable to BSE Exclusive securities in groups viz. X, XT, Z, ZP, ZY, Y.
2. Securities should have a price of Rs 10 and more (as on review date)
3. The market capitalization the security should be less then Rs. 1000 crores.
4. The objective criteria for shortlisting of securities under Add-on Price Band Framework is as follows :-
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Price Movement in the past period (calendar period)
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Price movement
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6 Months > 6x
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1 Year > 12x
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2 Years > 20x
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3 Years > 30x
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Example – For a security with a reference price of Rs 10, the price movement to considered shall be as follows:
6 months – Rs 60 (600%)
1 year – Rs 120 (1200%)
2 years – Rs 200 (2000%)
3 years – Rs 300 (3000%)
5. Accordingly, the shortlisted securities, shall have 6 monthly, 1 yearly, 2 yearly and 3 yearly price band in place of weekly, monthly, quarterly price band as follows –
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Reference Price
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6 Months
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1 Year
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2 Years
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3 Years
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X
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6X (600%)
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12x (1200%)
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20X (2000%)
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30x (3000%)
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6. The Review Cycle: A security placed in Add-on Price Band Framework shall remain in the framework for a minimum period of 30 calendar days and shall be eligible to move out if it does not qualify the provisions of the above framework thereafter. Review of the shortlisted securities under the framework i.e. inclusion/exclusion shall be carried out on monthly basis.
7. The add-on price bands shall be in addition to the applicable daily price bands of such securities.
8. In case of corporate actions of a material nature, like rights issue, bonus issue, merger, amalgamation, takeover etc. the framework shall be applicable on the new adjusted base price.
9. It is reiterated that the above framework shall be in addition to all other prevailing surveillance measures being imposed by the Exchanges from time to time.
10. Also, it may be noted that the shortlisting of securities under aforesaid framework is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company.
11. The provisions of this circular shall come in effect from August 23, 2021.
12. Initial list of securities identified / shortlisted based on the above criteria and on which the aforesaid framework shall be applicable with effect from August 23, 2021 is enclosed.
For any clarifications, trading members are advised to contact on 022-22725158/5091.
Yogendra Daxini Saji Sunilkumar
Asst. Gen. Manager Senior Manager
Surveillance Surveillance
August 11, 2021
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