ESM rules were introduced on June 4 for highly volatile micro-small cap companies with a market cap of less than Rs 500 crore. Many investors complained that they could not exit these stocks as they are traded once a week. A company Mercury EV Tech has challenged the new rule at the Securities Appellate Tribunal (SAT).
Leading stock exchanges, NSE and BSE along with the markets regulator had come up with an enhanced surveillance mechanism for micro and small-cap companies that have a market cap of less than Rs 500 crore, which has been effective from June 5.