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NSE Places BSE Shares Under Additional Surveillance, Triggering 5% Decline

Requiring full margin for all trades, the measure also keeps the shares under five-session scrutiny to curb speculative volatility.

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Overview

  • BSE Ltd. shares were moved into the NSE’s Stage 1 Additional Surveillance Measures on June 11, subjecting trades to 100% margin requirements.
  • The announcement sent BSE stock down 5%, ending a nine-day winning streak and hitting an intraday low of ₹2,855.
  • Since March, shares had rallied about 130% as BSE expanded in India’s equity derivatives market and investors anticipated NSE’s IPO.
  • At a market valuation near $14 billion, BSE stock is trading at more than 36 times estimated earnings for the coming year, raising valuation concerns.
  • Under the ASM rules, securities remain in the framework for at least five trading sessions before exchanges conduct a further review.