1. Securities and Exchange Board of India (SEBI) and the Exchanges in order to enhance market integrity and safeguard interest of investors, have been introducing various enhanced pre-emptive surveillance measures such as reduction in price band, periodic call auction, transfer of securities to Trade to Trade (TT) category & Graded Surveillance Measures (GSM) etc. from time to time. The main objective of these measures is to;
· Alert and advice investors to be extra cautious while dealing in such securities and
· Advice market participants to carry out necessary due diligence while dealing in such securities.
In continuation with various surveillance measures already implemented, it has been decided to introduce an additional surveillance measure called “S+ Framework” for enhanced monitoring of securities exclusively listed / traded on main board of BSE which are not a part of GSM framework and witness price rise not commensurate with financial health and fundamentals like Earnings etc. or witness spurt in volumes without any corporate event.
2. The list of aforesaid securities placed under “S+ Framework” shall be informed to market participants separately and shall also be available on the Exchange website.
3. For ease of reference, securities under “S+ Framework” shall be placed in a separate group i.e. “SS” (Securities being settled on normal rolling basis) and “ST” (Securities being settled on trade to trade basis).
4. All market participants dealing in identified securities have to be extra cautious and diligent as, subject to satisfaction of certain criteria, additional restrictions may be imposed on dealing in such securities, such as ;
a. Imposition of weekly, monthly price bands in addition to existing daily, quarterly, yearly price bands
b. Imposition of very high transaction charges
c. Placing / continuing securities in trade to trade category
d. Requirement of depositing additional amount as Surveillance Deposit, which shall be retained for an extended period.
5. All the aforesaid actions shall be triggered based on certain criteria and shall be made effective with a very short notice.
6. The above surveillance actions are without prejudice to the right of Exchanges and SEBI to take any other surveillance measures, in any manner, on a case to case basis or holistically depending upon the situation and circumstances as may be warranted in the interest of maintaining market integrity.
7. The members trading in the identified securities either on their own account or on behalf of clients shall be kept under close scrutiny by the exchange and any misconduct shall be viewed seriously.
8. Further details of this framework are given in Annexure I.
This circular is being issued by the Exchange as a surveillance measure with a view to ensure market safety & safeguard interest of investors.
In case of any clarifications, members may contact on following numbers 022 2272 5158 / 5093 / 5091/ 8497.
For & On behalf of BSE Ltd.
Usha Sharma Jeevan Noronha
Addl. General Manager Manager
June 07, 2017