In order to curb extreme volatility in the markets and curtail market risk for gullible investors, Securities & Exchange Board of India along with the stock exchanges decided to implement Additional Surveillance Measures in early June. The measures involve putting stocks that display big high-low variation in trading, high client concentration, multiple price-band hits, high closing price to closing price variation and extraordinarily high PE ratios in a curtailed trading mechanism that will allow trades only with 100% margin and with a 5% price-band.

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Some misinformation about the mechanism has caused unwarranted concern and consternation among prospective investors and existing shareholders of companies that find themselves on the list. While the regulators have clearly indicated that being on the ASM list “does not indicate an adverse action against company”, fears abound.

To better inform investors about the fundamentals of several companies on the list, CNBC-TV18 has launched the SEBI WATCHLIST, which will seek to better inform investors about the strengths and weaknesses of the businesses in order to enable them to take more informed decisions, and segregate the bad apples from the good.

After BSE removed 13 companies including Dilip Buildcon, Tinplate Company of India and Venky, from the additional surveillance measures (ASM) framework with effect from Thursday, the shares of these companies traded higher today.

Shares of Venky’s (India) surged by over 18 percent to Rs 2,657.85, gaining Rs 407.80 in value in the trade. The poultry processing company’s stock touched a high of Rs 2,699 and a low of Rs 2,370 in intra-day trade on the BSE.

Tinplate Company of India’s share rose over 15 percent to Rs 185.50, adding Rs 24.75 to the stock value on the BSE index. The packaging company’s share price ranged between a high and a low of Rs 188.10 and Rs 170 respectively.

Construction engineering company, Dilip Buildcon’s scrip rose 7.56 percent to Rs 853, gaining by Rs 59.95 on the BSE. It hit a high of Rs 869.82 and a low of Rs 818, after opening at Rs 843.

Apart from the above, shares of Bhansali Engineering Polymers, Goa Carbon, HIL, Himadri Speciality Chemical, Man Industries, Sanwaria Consumer also rose today.

There are over 100 companies currently listed under the ASM framework, which is an initiative of the Sebi and exchanges to enhance market integrity and safeguard the interest of investors.

Meanwhile, the Sensex continues to trade lower by 206 points, at 37,315, down by 0.55 percent at 12:38 PM, while the Nifty has shed 0.51 percent, losing 58 points, to 11,288.

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First Published:Aug 2, 2018 1:13 PM IST