BSE to list two more companies under graded surveillance

New Delhi: Leading exchange BSE will bring two more firms under the graded surveillance measures (GSM) framework to check any abnormal rise in share price that is not in tune with the companies' financial health.

As per a circular, the exchange will place Anugraha Jewellers and Oracle Credit under GSM from the next month. The new framework for the two will kick in from May 8, according to the circular. Last month, the BSE had listed 774 firms to be brought under the ambit.

"Market participants may note that the GSM framework shall be in conjunction with all other prevailing surveillance measures being imposed by the exchanges from time to time," the BSE said.

The exchange also advised members to "exercise additional due diligence" while trading in these securities "either in own account or on behalf of their clients". The enhanced surveillance steps have been introduced by the BSE as well as NSE to check any abnormal jump in share price not commensurate with the company's financial health.

The measures involve steps such as placing securities in trade to trade category, requiring the entities to put in additional amount as surveillance deposit that can retained for an extended period and freezing of price on the upper side of trading in shares.