Stock market bounces back; banks, metals shine
Sensex was up 599.34 points, or 0.83 per cent at 73,088.33, while the Nifty was up 151.20 points or 0.69 per cent at 22,147.
To safeguard investors' interest, leading stock exchanges BSE and NSE have advised members to take extra caution while trading in 363 illiquid stocks.
Illiquid stocks are those that cannot be sold easily because they see limited trading. These stocks pose higher risks to investors because it is difficult to find buyers for them as compared to frequently traded shares.
In similar-worded circulars, both the exchanges advised their trading members “to exercise additional due diligence while trading in these securities either on own account or on behalf of their clients”.
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BSE and NSE have listed out 339 and 24 illiquid stocks, respectively, where additional due diligence is required.
Illiquid scrips listed by both the exchanges include California Software Company, Surana Corporation, Usha Martin Education & Solutions, Zenith Birla (India) Ltd, The Anandam Rubber Company, Cyber Media India, Visu International and Dynacons Systems & Solutions.
The exchanges said that periodic call auction will be conducted in these 363 securities with effect from April 10.
These securities are based on trading activity during the period during October, 2016 to March, 2017.
In December 2014, capital markets regulator Sebi had relaxed norms for trading in illiquid stocks. The move was aimed at shifting various illiquid scrips to normal trading session from the periodic call auction, the window where these stocks are currently traded.
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