In the case of small-cap stocks, despite several regulatory actions including the application of a trade-to-trade (TTT) regime, the bull run has not come to a halt. However, the authorities have succeeded in reining in trading volumes.
BSE has shifted more than 300 stocks since July 15 to the TTT category to combat the unusual price surge. But only in 47 counters have prices come down that too marginally. The maximum drop has been of 16% in Oxford Industries to Rs 16.40.
On the other hand, trading volumes have slipped considerably in many counters. During the period, the BSE small-cap index rose 14.53% (700.87 points) from 4,823.25 to 5,524.12 on August 16.
EMore than 300 stocks shifted to trade-to-trade category since July 15
Under TTT, it is mandatory that each trade whether buy or sell results in delivery, and no netting of trades is allowed.