Surveillance concerns have prompted the BSE and the NSE to reduce the price band of six mid-cap stocks from 20 per cent to five per cent. The decision has been taken in consultation with the SEBI.
The stocks in question are Glodyne Technoserve, Radico Khaitan, Pipavav Defence and Offshore Engineering Company, Parsvnath Developers, Tulip Telecom and Era Infra Engineering. The decision comes into effect starting Monday.
The resolution was supposed to have been implemented in Friday’s pre-open session. However, “since a few trades were already executed at the original price band of 20 per cent, the price bands were restored back to 20 per cent in a coordinated manner,” said a circular from the exchanges.
Over the last two days, Glodyne Technoserve fell 36 per cent to close at Rs 218.90, down 19.99 per cent on the BSE. Radico Khaitan fell 12 per cent on Thursday but recovered in Friday’s trading session to close at Rs 109.05, up 7.65 per cent.
Era Infra and Tulip Telecom recovered after Thursday’s losses to close on Friday at Rs 137.85, up 19.97 per cent and Rs 99.50, up 13 per cent respectively.