These small & mid cap MFs fell the most after BSE circular | Economic Times

Many investors and market experts were took by surprise by the sudden fall in small and mid cap stocks this week. While the broader market continued to go up, these two segments saw stock prices falling drastically. Many small and mid cap mutual funds also faced the brunt of the sudden decline in stock prices on Tuesday. Even though indices saw a sharp turnaround from their lows after BSE eased its earlier plan to impose strict price movement restrictions, experts are suggesting caution in this space.22 small and mid cap schemes saw their returns coming down by more than 2% in a single day on Wednesday. All this started when the Bombay Stock Exchange came out with a circular on Monday in an “endeavor to maintain market integrity and curb excessive price movement in securities listed exclusively on BSE Trading Platform.” According to experts, surveillance measures are used to put certain stocks that show unusual activities under watch. Graded Surveillance Measures (GSM), Additional Surveillance Measure (LT-ASM), Short-Term Additional Surveillance Measure (ST-ASM), etc are the kind of measures that are used to keep stock prices in check. This step by Sebi halted the rally in mid and small cap segments.A day after this, BSE issued a clarification on its circular on additional price surveillance measures stating that its new add-on surveillance measures are limited only to X, XT, Z, ZP, ZY, Y group shares exclusively listed on the BSE. Many stocks saw a sharp rise in prices post this development. Mid cap schemes were better in handling the sudden shock, but small cap funds saw a bigger fall in a day. Here are the small cap and mid cap schemes that lost the most after the initial announcement:Small cap funds: 85262191 Mid cap funds:85262260