BSE Implemented A New Monitoring System

BSE implemented a new monitoring system, which will help in preventing volatility in small stocks.

In order to avoid sudden sharp volatility in small and midcap stocks, capital markets regulator SEBI has launched a new monitoring mechanism.

According to a BSE circular, this new arrangement will be beneficial for companies whose market capitalization is less than Rs 1,000 crore. These will include X, XT, Z, ZP, ZY, and Y Group securities.

As per the new framework, the selected securities will have half-yearly, yearly, two-year, and three-year price bands instead of weekly, monthly, and quarterly price bands, BSE said.

All these price bands will be in addition to the daily price bands applicable for these securities.

On Monday this week, BSE had said in a circular that weekly, monthly, and quarterly price bands would also be implemented for select small and medium companies.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said the BSE’s decision to introduce the new monitoring mechanism was taken at an appropriate time.

This will check the volatility of share prices in small companies.

Government accepts the pressure of high GST rates on the auto sector.

The burden of higher GST rates on the auto sector may come down soon. Tarun Bajaj, Revenue Secretary in the Finance Ministry, has admitted that the GST rates in the auto sector are still high.

He also said that the government is in the process of further rationalizing the rates of GST.

In the next meeting of the GST Council, it can be considered to reduce the rate of GST on cars and two-wheelers to 28 percent.

At the same time, the government will also remove discrepancies in the GST rates of finished goods and raw materials associated with them.

Right now there are many products whose raw materials have higher GST than finished goods.

The country’s largest two-wheeler company Hero MotoCorp has already demanded to bring down the current rate of 28 percent GST on two-wheelers to 18 percent.

The GST Council may meet in the next few weeks.

In a virtual meeting with entrepreneurs on Wednesday, Bajaj said that higher taxes are having a negative impact on the automotive sector and the government needs to consider it.

“I absolutely agree with you on the tax rates on the automotive sector,” Bajaj said.