Stocks Shifted To Trade-to-Trade Settlement Fall Up To 20 PC

New Delhi, Sept 24: | Updated: Sep 25 2003, 05:30am hrs
BSEs move to shift nine A and B1-group stocks, including six of the erstwhile K-10 stocks, to trade-to-trade settlement has triggered massive selling in these counters. These stocks have plummeted up to 20 per cent on Wednesday, while three of them attracted lower circuit filters. Among the Ketan Parekh favourites, Silverline Industries, Himachal Futuristic Communications, Pentamedia Graphics, SSI Ltd, GTL Ltd and Aftek Infosys would be moved for trading and settlement on a trade-to-trade basis with effect from September 26. Losses in these counters during the day range between 10-20 per cent.

Three other counters, Global Trust Bank, Kopran Ltd and Lupin Ltd were also shifted to a trade-to-trade settlement mode, according to a release issued by The Stock Exchange, Mumbai (BSE). The move has come as a preventive surveillance measure to safeguard the interest of the investors, pursuant to a meeting with the Securities and Exchange Board of India (Sebi), the release said, The recent spurt in volumes of certain scrips has been cited as the reason for the move.

Following the decision, the nine stocks were hammered on the bourses. Himachal Futuristic and Aftek Infosys touched their lower circuit filter of 20 per cent and closed the day at Rs 22 and Rs 283.4, respectively. Bulk drug manufacturer Kopran also attracted the lower circuit filter of 10 per cent and closed at Rs 60.4 on Wednesday. Free fall in SSI and Pentamedia, other KP favourites, also dropped 16.79 per cent and 16.54 per cent from their previous days close to end the day at Rs 111.25 and Rs 7.82, respectively. Global Telesystems and Silverline also shed 10.67 per cent and 10.29 per cent each to close at Rs 65.3 and Rs 5.49, respectively. Lupin Labs also declined 7.75 per cent during the day to close at Rs 437.45.

Contrary to the stocks in A, B1, B2, F and G group where settlement is done after squaring off purchase and sale transactions, settlement in scrips which are traded on trade-to-trade basis is done without squaring off purchase and sell transactions in a scrip.