Markets

Trade cautiously in 194 illiquid stocks: Bourses to members

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With an aim to safeguard investors’ interest, leading stock exchanges -- BSE and NSE -- have advised their members to take extra caution while trading in as many as 194 illiquid stocks.

Illiquid stocks are the ones which cannot be sold easily because they see limited trading. These stocks pose higher risks to investors because it is difficult to find buyers for them as compared to frequently traded shares.

In similar-worded circulars, both the exchanges advised their trading members “to exercise additional due diligence while trading in these securities either on own account or on behalf of their clients.”

BSE and NSE have listed out 186 and 8 illiquid stocks, respectively, where additional due diligence is required.

Illiquid scrips listed by both the exchanges and will be traded in periodic call auction mechanism from April 9, the exchanges noted.

In December 2014, Sebi had relaxed the norms for trading in illiquid stocks. with an aim at shifting various illiquid scrips to normal trading session from the periodic call auction, the window where these stocks are currently traded.

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Printable version | Apr 14, 2021 12:38:21 AM | https://www.thehindu.com/business/markets/trade-cautiously-in-194-illiquid-stocks-bourses-to-members/article23453684.ece

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