The margins have imposed following investigations conducted by the bourse on the scrips which have hit circuit brokers almost every day, says the source.The margins are expected to contain the price rise on select scrips and provide safety net to the small investor.

Suspecting price-rigging, HSE has imposed margins on about 39 scrips having too much volatility. The margins will range from 5 per cent to 20 per cent, effective for the settlement no.42/99-2000 on the net outstanding position.

Further, the bourse has imposed special margins on 55 scrips traded with immediate effect, said a note circulated among the HSE brokers. Some of these margin-levied scrips have surfaced on the bourse in the last two- month period, which earlier had been dubbed as vanished companies. When contacted, HSE executive director M Subrahmanyam confirmed the imposition of margins and said that the HSE has always been imposing heavy special margins to safeguard the small investor from payment defaults.

Further to volatile and special margins, HSE has imposed 100 per cent margins on 8 scrips. Five scrips are under compulsory delivery mode and it has revised daily price band in respect of 10 scrips, to contain and check on the price-rigging. Earlier, Sebi had instructed southern bourses to be vigilant and even suspend trading in scrips where the exchanges suspect any manipulation or price-rigging. It had also asked the exchanges to impose 100 per cent margins, if called for.

Despite the restrictions, a majority scrips have touched its tops on HSE, while its turnover has dipped to Rs 4.6 crore. Meanwhile, on the directions from Sebi, HSE authorities have conducted investigation into three scrips on price-rigging. They are: Danlaw Technologies, Fortune Informatics, and Cybermate. According to exchange sources, it is still investigating on six more scrips about price rigging and possible insider trading.