INSUBCONTINENT EXCLUSIVE:
Mumbai: Bets on almost 40 midcaps are set to get dearer from November 1 as exchanges more- than- double margins to 35% for companies with Rs
segment.
For instance, current equity market margin for Adani Ports is 13.12% while Torrent Pharma is 12.52% as per the National Stock
Under the new norms, the margins would be a minimum 35%.
Though the increase in margins could impact a few dozen stocks in the near term, it
short run, but in the long term it will benefit investors as the capital markets regulator and exchanges look to discourage wild bets on
include Future Retail, Mphasis, Emami, Adani Green Energy, JSW Energy, Metropolis Healthcare, Future Consumer, Bajaj Consumer Care as the
stock exchanges have decided to take additional surveillance measures to reduce volatility in stocks with high promoter pledge.
There are
several instances in the past year where stocks in the F-O segments moved widely
Last year, on September 21, shares of Dewan Housing Finance fell 60% intraday over the news that DSP MF was forced to sell commercial papers
of the company in secondary market at a higher yield.
Brokers said the upfront margin requirements for stocks with above 25% promoter pledge
other criteria that will attract higher margin are if concentration of the top 25 clients in trading during the last 30 days is 30% or more,
and when if the price variation between high and low of a scrip is greater than 40% in the last three months.
In June, the Securities and
Exchange Board of India (Sebi) board tightened norms for disclosing the details of pledged shares by promoters
Now, promoters will have to furnish reasons if combined encumbrance crosses 20% of the company's equity capital
In case the amount of pledged shares of a company is over 20%, then its audit panels have to be informed of any undisclosed encumbrance.
