Indian Stock Exchanges Implement Price Control Measures for SME Stocks

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India are introducing price control measures for stocks listed on their respective small and medium enterprises (SME) platforms. This move aims to protect investors from market manipulation.

According to an announcement from both exchanges, the enhanced regulatory mechanism will take effect soon. It will impose trading restrictions on stocks that experience price fluctuations beyond preset thresholds within a given period.

Under these new regulations, affected stocks will be subject to a mandatory delivery mechanism, eliminating intraday speculative bets, and will face a maximum daily price movement cap of 5%.