The Bombay Stock Exchange (BSE) is putting in place a series of measures to prevent use of its exchange platform by various unscrupulous entities to evade taxes and launder money.
These measures include putting additional circuit filters on stocks that are susceptible for price manipulation and reducing the number of out of the money option contracts.
The exchange recently put weekly, monthly, quarterly and yearly circuit filters on about 4000 stocks that are exclusively traded on the BSE and stocks listed on its SME and SME ITP platform.
The exchange has also reduced the number of strikes in an option contracts available for trading from seven to three after it has found that deep out-of-money contracts were used by entities to convert black money into white.