The Bombay Stock Exchange (BSE) today selectively relaxed the exposure norm for the brokers to deal in stocks falling under compulsory rolling settlement (CRS) from July 2. It, however, maintained the current norms for B1, B2 and Z category.
BSE has decided that the restrictions imposed on the cumulative net outstanding purchase or sale position of members on stocks under CRS would not be applicable on 176 scrips which at present are in the "A" group and which also would be traded in the CRS from July 2. Additional 246 scrips having facility of BLESS/ALBM/MCFS or which are included in BSE-200 would be traded under CRS with effect from July 2.
Under CRS (other than the 176 scrips of 'A" group moving in this segment w.e.f July 2), the net cumulative outstanding purchase on sale position built by a member in a settlement above Rs 1 crore and up to Rs 2 crore would attract special ad hoc margin of 25 per cent in excess of Rs 1 crore.
However, the members would not be allowed to take exposure in a single stock in the existing 163 scrips in the CRS and also the 70 scrips which shall be moving in the CRS from B1, B2 and Z categories beyond Rs 2 crore.
In March, when BSE tightened exposure limits it had said the limits would be reviewed before the additional scrips cleared by the Securities and Exchange Board of India (Sebi) move into the CRS segment. Institutional transactions and transactions marked "sale for delivery" will be exempt from the above limits.
However, the restrictions on the remaining scrips in the CRS and on the B1, B2 and Z group scrips in the weekly settlement would continue to apply and under B1 group, the cumulative net outstanding purchase or sale positions in a single and all B1 group stocks have been limited to Rs 5 crore and Rs 15 crore, respectively.
The B1 group will attract a special ad hoc margin of 25 per cent on the cumulative net outstanding purchase or sale position in a single stock amounting between Rs 2-5 crore.
Similarly, in the B2 group, the cumulative net outstanding purchase or sale position in one stock has been continued to be restricted to Rs 1 crore and in all B2 group shares to Rs 4 crore.
A cumulative net outstanding purchase or sale position between Rs 50 lakh and Rs 1 crore in a single B2 scrip will attract 25 per cent special ad hoc margin in addition to the special margin applicable to the scrip.
The limits for the cumulative net outstanding purchase or sale position in a single and all Z group scrips in one settlement have been fixed at Rs 25 lakh and Rs 50 lakh, respectively.
