Sebi, SEs swing into action as stocks skid

Market regulator Sebi and the two stock exchanges, NSE and BSE, have swung into action to stem large scale sell-off in a host of midcap stocks, amid concerns of possible manipulation of their share prices.

The BSE and NSE, in consultation with Sebi, jointly announced that they have decided to reduce the price bands of six stocks to five per cent on surveillance concerns.

These stocks are Parsvnath Developers, Tulip Telecom and Era Infra Engineering, Glodyne Technoserve, Radico Khaitan and Pipavav Defence & Offshore Engineering Company, all of which witnessed sharp plunge in their share prices on Thursday. In Friday’s trade also, Parsvnath, Pipavav Defence and Glodyne Technoserve plunged by up to 20 per cent, although Tulip, Radico Khaitan and Era Infra managed to move up.

The two stock exchanges have also begun seeking clarifications from large brokers and clients who have dealt in these stocks, while Sebi is inspecting data in its market surveillance system to find any unusual trades. 

The price bands would be lowered to five per cent for six stocks with effect from July 30, after which trades would not be allowed beyond five per cent movement in their shares. 

The BSE Sensex closed nearly 200 points up on Friday at 16,839.19. 

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