To safeguard the interest of investors, many brokers prohibit trading or purchase of shares of companies placed under GSM
Regulator Sebi on Wednesday relaxed certain surveillance measures, including those pertaining to market wide position limits, that were put in place eight months ago to curb volatility in the markets due to the coronavirus pandemic. Citing the "changed market environment", the watchdog has decided to relax the measures with respect to increased margin for non-F&O (Futures & Options) stocks and revisedmarket wide position limits. Steps related to flexing of dynamic price band for F&O and equity index derivatives (F&O) would continue to be in force, Sebi said in a statement. The surveillance measures, announced in March, are in force till November 26. They are aimed at ensuring orderly trading and settlement, effective risk management, price discovery and maintenance of market integrity. Among the measures, the watchdog had increased the margin requirement for non-F&O stocks in cash market and revised Market Wide Position Limit (MWPL) from 95 per cent to 50 per cent .
45 stocks under watch after reports of unauthorized trading tips being exchanged on messaging platforms
Torrent said a pledge of shares is a security interest in favour of lenders and can be enforced by sale of such shares in event of default
The decision was taken after a joint surveillance meeting of exchanges and Sebi last week