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Bourses to levy more margin on high promoter-pledged stocks

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Bourses to levy more margin on high promoter-pledged stocksMumbai, Oct 25 (IANS) The BSE and the NSE have announced an additional margin of minimum 35 per cent to be levied on trading of stocks with promoter pledged holding of over 25 per cent or more, among other criteria.

The surveillance measures would come into effect from November 1.

The minimum 35 per cent additional margin would also be levied if the concerned company’s market capitalisation is greater than Rs 1,000 crore.

“SEBI and exchanges in a joint meeting have decided to levy minimum margin of 35 per cent on the stocks (including stocks in derivatives segment) that satisfy the following criteria…

“(1) market capitalisation is greater than Rs 1,000 crores,

“(2) pledged holding of the promoter accounts for more than 25 per cent of the total number of the issued shares of the company…,” the exchange notifications said.

The other criteria to attract higher margin include “concentration of the top 25 clients in trading during the last 30 days is 30 per cent or more” and if the price variation between high and low of a scrip is greater than 40 per cent in the last three months.

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