• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Chennai, June 11

Griffin Chemicals joins the list of companies whose shares record abnormal gain on re-listing.

The stock, which got relisted on Wednesday, opened at Rs 23, a whopping 1,740 per cent higher than the last-traded price of Rs 1.25 on August 8, 2002.

It touched a high of Rs 50 (a rise of 3,900 per cent), but closed the day at Rs 23. Total traded volume on the counter was a paltry 5,623 shares. There have been two other instances — KGN Industries and Sylph Technologies — of such rise in the last one month. All these stocks come under trade-to-trade (T-to-T) category for settlement, wherein netting of trading is not permitted. When asked, a BSE official said that re-listing stocks have no price bands.

“So technically, the stock can go to any limit,” he added.

With regard to KGN industries, the BSE then issued a statement saying that “further investigations are being carried out to examine the placing of orders at unrealistic prices and appropriate action, if any, will be initiated against the concerned entities,” the BSE said. The BSE official, however, refused to divulge details of action/observation on these companies.

SEBI had sometime ago proposed imposition of 20 per cent circuit filter on the first day of re-commencement of trading in stocks in all cases of revocation of suspension or similar situations, as may be decided by the stock exchanges.

The regulator had also proposed a base price to be fixed in consultation with SEBI registered merchant bankers for applying the 20 per cent circuit filter. However, no guideline has been issued so far.

“Investors ought to steer clear of such counters. There are clear signs of price manipulation as these re-listed stocks are soaring on very thin volumes,” said a Mumbai-based broker.

More Stories on : Stocks | Chemicals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Corporate developments

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line