Leading stock exchange BSE today lowered the circuit limit for shares of Tata Metaliks capping its maximum movement in a day at 5 per cent after a recent rally in the company's stock.
Earlier, Tata Metaliks shares were allowed an upward or downward movement of 10 per cent in a day.
The change will be effective from tomorrow and follows a sharp rally in the share price of the company in the past six trading sessions, whereas it has surged by more than 91 per cent.
It closed at Rs 224.05 apiece today on the BSE, up 9.99 per cent from the previous close.
"The circuit filters has/have been changed from their existing levels...In the scrip (Tata Metaliks) with effect from May 23, 2016," BSE said in a circular.
The new limit ensures that stock prices do not go up or down beyond a level during a trading session.
The exchange, last week, had set an upper limit of 10 per cent for Tata Metaliks.
Last week, Tata Steel announced that it has dropped plans to merge group firms, Tata Metaliks and Tata Metaliks DI Pipes with it due to delay in regulatory and statutory approvals, among other factors.
Earlier this year, BSE had initiated a procedure to help
firms, suspended on account of non-compliance with listing norms, meet the necessary regulatory requirements speedily.
Under the procedure, BSE-listed firms are required to meet with the compliances to revoke their suspension, within a prescribed time limit, and failure to complete the process would result in compulsory delisting of such companies from the stock exchange.
Meanwhile, BSE has also empanelled independent valuers to compute the fair value of companies that are to be delisted.
There are estimated to be over 1,200 companies whose shares are listed on national bourses BSE and NSE but where trading has been suspended for various non-compliance issues for over seven years.
Besides, there are over 3,000 companies listed on various regional stock exchanges that have become defunct.
According to Sebi whole time member Rajeev Kumar Agarwal, the regulator is working on guidelines to remove companies which have been suspended for many years.
