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Dec 11, 2012
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Companies with high pledged stake may face F&O ban from Sebi to check slide in share prices
Cash-strapped promoters who have pledged a substantial part of their holdings with lenders may be squeezed further as the Securities and Exchange Board of India, or Sebi, is planning to keep their company stocks out of the equity derivatives segment to check a steep slide in share prices.What has prompted the regulator to consider such a measure are rising instances of stocks plunging as much as 50% within days of financiers offloading shares of promoters who failed to pay margin money at a time liquidity is tight, said a person familiar with the development. The proposed measure will hit companies whose promoters are highly leveraged and lead to stocks of such companies being excluded from the futures and options (F&O) segment, they said.
Source -
http://economictimes.indiatimes.com
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