Sebi now extends surveillance and trade-for-trade settlement to SMEs

Mumbai: The Securities and Exchange Board of India (Sebi) has decided to extend the trade-for-trade settlement framework and short-term additional surveillance measure (ASM) to include small and medium enterprises (SME) stocks, according to a circular issued by the stock exchanges. Brokers said the move is aimed at curbing stock price manipulation in SME stocks. This framework will be implemented by October 3.

"As per the Joint Surveillance Meeting of Exchanges and SEBI, the extant Trade for Trade (TFT) and short-term additional surveillance measure (ASM) framework shall be extended to SME stocks subject to certain changes.

Market participants may note that the TFT and ASM framework shall be in conjunction with all other prevailing surveillance measures being imposed by the Exchanges from time to time," said two separate circulars by NSE.