NIESSPA is a trading instrument of Nippon India savings fund listed on BSE. In starting of Dec 2024, its price was around 80-90 rs, but on 10th march, the price is now 10046.65.
What does this company do, and why there is such a huge change in its price. No inquiry or any notice given by SEBI. When normal stock of B or X group shows some volatility, is is placed into ASM or ESM instantly but why not this. And Upper Circuit limit is also at 10%.
At this speed, it will be become 20000 in next 7-8 trading sessions.
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Hi @Aditya_Gupta NIESSPA is the stock symbol for Nippon India Asset Management Ltd., which runs the Nippon India Mutual Fund. It’s not a regular stock but a segregated portfolio, created by the Nippon India Savings Fund. When some investments in a fund perform poorly, the fund managers move them separately as segregated portfolios. These portfolios are listed on stock exchanges, allowing investors to sell them if they are willing to.
In the last 3-4 months, the price of NIESSPA has risen sharply. It went from Rs 44 to over Rs 9100, showing a huge gain of 20,600%. However, the stock sees very few trades daily, with low overall volume and its price keeps rising in a consistent pattern.
This price surge in this instrument seems to be artificially created, with very little real market activity. The price increase doesn’t reflect any news or changes in the company’s fundamentals. The stock’s price moves are strange, with very low trading volumes and little fluctuation, despite having low liquidity. The trade volume of the instrument can be checked on exchange.
SEBI doesn’t apply ASM/GSM measures or suspend trading for segregated portfolios like NIESSPA because these portfolios are already recognized as troubled assets under SEBI’s rules for distressed investments. Unlike regular stocks, where such measures protect investors from manipulation, restricting trading in segregated portfolios would hurt investors by taking away their ability to sell and preventing the price from adjusting based on recovery potential.
Instead, SEBI focuses on making sure there’s proper disclosure, transparency in how the assets are being recovered, and fair distribution of any recoveries to the investors.
The trading patterns here are very uneven with fewer volumes but huge price jumps, price movements that don’t match any real news & no liquidity. Keeping in mind, that these are already troubled assets that fund managers moved into a separate category because they went bad. The way the price is moving with minimal volume, that could stop and the price will drop suddenly.
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