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Boundary-less trading

Jul 2, 2001

Badla-less trading has started on the exchanges today. It is a whole new ball game with market movers still coming to terms with the new system and Sebi’s new circuit filters. One interesting feature of the new rules is that 53 top stocks have no price circuits i.e. no upper or lower limits. These 53 stocks do not have price bands of 8% and 16% as they used to earlier. That market players have yet to grasp this, the boundary-less trading (for 53 stocks) has already created a record of sorts on the very first day of initiation. Apparently, some investor bought shares of cement major, ACC, at Re 1!

And how did this happen? Market sources say that apparently someone executed a sell order of 1 m shares of ACC “at market”. Since there was no price limit the stock got traded all the way downwards till it hit the last buyer. That last buyer had apparently placed an order to buy at Re 1!

Lest you think otherwise, let us clarify that the object of this story is not to pooh pooh somebody’s mistakes. Neither it is to congratulate the ‘lucky’ person who got the share/s at Re 1 per share. The objective is to warn investors that in the aforesaid 53 ‘boundary-less’ stocks be very careful while giving orders. It might be a good idea to initially place your sell or buy orders with limits.

Be careful the next time you give an order to buy or sell securities. You would not be very happy at having sold ACC at Re 1.

List of 53 boundary-less stocks
S.No Security
1 ABB
2 ACC
3 Asian Paints
4 Bajaj Auto
5 Bhel
6 BPCL
7 Britannia Industries
8 BSES
9 Castrol India
10 Cipla
11 Kochi Refineries
12 Colgate Palmolive
13 Dabur India
14 Digital Equipment
15 Dr. Reddy's
16 Glaxo India
17 Grasim
18 Gujarat Ambuja Cement
19 HCL Infosystems
20 HDFC
21 HDFC Bank
22 Hero Honda Motors
23 Hindalco
24 Hindustan Lever
25 HPCL
26 ICICI
S.No Security
27 Indian Hotels
28 Infosys Technologies
29 IPCL
30 ITC
31 Larsen & Toubro
32 Mahindra & Mahindra
33 MTNL
34 Nestle India
35 NIIT
36 Novartis India
37 Oriental Bank of Commerce
38 P&G Hygiene
39 Ranbaxy
40 Reckitt Benckiser
41 Reliance Industries
42 Reliance Petroleum
43 Satyam Computers
44 State Bank Of India
45 SmithKline Consumer
46 Sterlite Optical
47 Tata Chemicals
48 Tata Power
49 Tata Tea
50 Telco
51 Tisco
52 VSNL
53 Zee Telefilms

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