Reliance Infrastructure Urges SEBI, Exchanges to Revisit ASM Restrictions on Shares; Shares Jump 5%
Reliance Infrastructure (NSE:RELINFRA, BOM:500390) has approached the Securities and Exchange Board of India (SEBI), the National Stock Exchange and the BSE seeking a review of the surveillance framework that has placed its shares under additional trading restrictions, according to an Indian bourse filing on Sunday.Shares of the company jumped 5% in early trade on Monday.The company said the current Additional Surveillance Measure (ASM) mechanism, which permits trading only once a week with a 5% price band, is affecting more than 700,000 retail shareholders and limiting price discovery."The impact of these restrictions falls disproportionately on its public shareholders," the company said.Reliance Infrastructure proposed retaining safeguards such as margin requirements, gross settlement and price bands while considering alternatives including a call-auction mechanism or a wider graded price band.The company also said the restrictions remain in place despite the stay granted by the National Company Law Appellate Tribunal on the insolvency admission order and the corporate insolvency resolution process.
