Exchanges have extended the short-term Additional Supervisory Measures (ASM) and trade-on-trade settlement framework to small and medium enterprise (SME) stocks. This regulation will be implemented from October 3.
Two separate notifications issued by the exchange said the short-term ASM and Trade-for-Trade (TFT) frameworks will be extended to small and medium-sized enterprises.
“Market participants may note that the TFT framework shall be integrated with all other existing regulatory measures implemented by the exchanges from time to time. Furthermore, it is noteworthy that the shortlisting of securities under TFT is purely for market surveillance purposes , should not be construed as adverse action against the concerned company/entity,” a notification from the Bombay Stock Exchange said.
For short-term ASM stocks, the applicable margin rate is 50% or the total existing margin, whichever is higher.
Intraday trading is not allowed in the T2T segment as all buy and sell transactions will be subject to mandatory delivery.