Due to surveillance concerns, BSE and NSE in consultation with SEBI decided to reduce the price bands of Glodyne, Radico, Pipavav, Parsvnath, Tulip and Era Infra to 5% from 20% earlier
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have decided to reduce the price band of six companies to 5% from 20% allegedly linked with Kolkata-based broker Dinesh Singhania. Yesterday, Moneylife had sent a mail to the Securities and Exchange Board of India (SEBI) asking about the volatility in stock markets on Thursday.
While, the market regulator did not reply to our mails, the joint statement from the bourses does mention “in consultation with SEBI”, both BSE and NSE decided to reduce the price bands due to “surveillance concerns” from 30th July.
The bourses reduced price bands of Glodyne Technoserv, Radico Khaitan, Pipavav Defence and Offshore Engineering Co, Parsvnath Developers, Tulip Telecom and Era Infra Engineering to 5% from 20%.
“The above measure was communicated to the exchanges for implementation today during pre-open phase, however, as the revised price bands were being implemented, the market opened for trade. Since a few trades were already executed at the original price band of 20%, the price bands were restored back to 20% in a coordinated manner by both the stock exchanges in consultation with SEBI in these stocks to ensure uniformity among investors trading these stocks,” the bourses said in a joint release.
Yesterday, there were rumours in the market that some financiers from Kolkata were selling stocks held by Dinesh Singhania of the DSQ Software fame. Anticipating some regulatory action, even some foreign institutional investors (FII) like Mauritius-based Vanguard Investments, exited from these stocks kept by them under P Notes.
On Friday, Glodyne ended 20% down at Rs218.90, Radico up 7.7% at Rs109, Pipavav down 10.5% at Rs55.60, Parsvnath down 20% at Rs37, Tulip 13% higher at Rs99.50 and Era Infra 20% up at Rs137.80 on the BSE, while the benchmark Sensex closed the day 1.2% up at 16,839.
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