Sebi has asked stock exchanges to raise transaction fees for trading in illiquid stocks in their recent discussions, two people aware of the matter said. The regulator feels some of these may be shell companies that could expose small investors to high risks, the people said on condition of anonymity.
Typically, any stock with an average daily turnover of less than Rs. 2 lakh for two previous quarters is termed illiquid. According to Mint research, there were at least 446 such firms in the past two quarters. In the December quarter, BSE listed 222 firms as illiquid.