Firms challenge trading curbs by stock exchanges; Sadbhav Infra moves SAT

Sadbhav Infra contested the move and filed a petition

Sadbhav Infrastructure Projects and some other companies recently put under the 'graded surveillance mechanism' (GSM) have moved the Securities Appellate Tribunal (SAT), challenging the move by stock exchanges.

GSM is meant to “enhance market integrity and safeguard interest of investors”.  Stocks put under this category have strict trading curbs such as a narrow price band and compulsory delivery.

The companies in question say they were given no prior intimation or details. On June 29, SAT directed the stock exchanges to withdraw the order and decide anew.

The orders were issued by the National Stock Exchange (NSE) and BSE on June 15, naming 73