Beneath the present ESM framework rule, the shares have been allowed to commerce solely as soon as every week. Now, this has been revised to all buying and selling days, the exchanges stated in a round. From July 24, 2023, exchanges will allow buying and selling on all days with +/- 2% worth band. Nevertheless, the rule of 100% margin stays unchanged, the exchanges stated. 

Beneath revised ESM motion, exchanges will permit T2T settlement with 100% margin. Earlier, buying and selling was permitted as soon as every week with Periodic Name Public sale.

All different rules underneath the ESM framework stay unchanged, the exchanges added.

The revised framework comes days after BSE-listed Mercury EV Tech had moved Securities Appellate Tribunal to problem the ESM framework.

The ESM framework was launched final Month for extremely risky “micro-small” firms. These are firms with a market cap of lower than ₹500 crore. As per SEBI, high-low worth variation and close-to-close worth variation are the parameters used to shortlist securities underneath this framework.

There are two phases underneath the ESM framework

Beneath Stage-I, the buying and selling of the securities is settled via a trade-for-trade mechanism with a worth band of 5%, or 2%. No revision for Stage-I.

Beneath Stage-II, the present surveillance motion permits buying and selling solely as soon as every week. Now, this has been revised to all buying and selling days underneath periodic name public sale with trade-for-trade settlement and a pair of% worth band.

Up to date: 19 Jul 2023, 06:45 AM IST