BSE shares crack 5% as stock added on NSE surveillance framework

The shares of India’s most valued stock exchange valued at nearly $14 billion (₹1.15 lakh crore), cracked over 5% (as of 2:14 p.m.) to ₹2,826, after the BSE India stock was added to stage-1 of the Additional Surveillance Measures (ASM) framework by the National Stock Exchange (NSE). The share was trading at ₹2,885.20 on the NSE with over 79.32 lakh shares getting traded.

The ASM framework is a regulatory tool used by stock exchanges to monitor and control excessive volatility or abnormal price movements. Stocks on the ASM list are subjected to enhanced scrutiny and trading restrictions, such as higher margin requirements and limits on intraday trading.

Prior to today's intra-day fall, the share price had gained 15% over nine straight trading sessions with over 1 crore shares changing hands in four of the nine sessions. Since its closing low of ₹1,956 on March 19, 2024, the stock has risen 45% from those levels and 58% since the year began.

Under Stage 1 of the long-term ASM framework, investors willing to trade in the stock have to provide for 100% margin upfront starting from the T+3 day. Though these stocks are eligible for a staged exit after 90 days, the entire value of the trade will have to be provided as a margin upfront.

The stock has been a multi-bagger, rising over 5,000% on the heels of surging trading volumes, over the past five years. Interestingly, of the 14 analysts tracking the stock, 10 have a "buy" rating.