Illiquid stocks are those that can't be sold easily because they see limited trading. They pose higher risks to investors because it is difficult to find buyers for them, as compared to the frequently traded shares. "Trading members are advised to exercise additional due diligence while trading in these securities either on own account or on behalf of their clients," BSE and NSE said in similar-worded separate circulars to their broker members.

As per directions from market regulator Sebi (Securities and Exchange Board of India), the BSE has listed out 2,133 such stocks, while NSE has also named 260 illiquid stocks where additional due diligence is required.

There are about 5,000 listed companies on the BSE, while NSE (National Stock Exchange) has more than 1,600 companies listed on its platform. There are many stocks common to the two bourses.

As per Sebi directions, the two exchanges are required to draw up a list of illiquid securities, based on a criteria jointly agreed with Sebi, and make it available to the trading members on a quarterly basis. Accordingly, the two exchanges have drawn up their respective lists of such illiquid securities based on trading activity during the quarter October-December 2012. The BSE listed illiquid scrips included Parrys Sugar Industries, Godfrey Phillips India, Kinetic Engineering, Oswal Spinning & Weaving Mills, Sanofi India Ltd, Deccan Cements, Reliance Chemotex Industries Ltd, Zodiac Ventures Ltd, Sahara One Media And Entertainment and Panasonic Energy India Co Ltd.

The NSE list included -- Deccan Cements Ltd, Asian Hotels

(East) Ltd, Asian Hotels (West) Ltd, Cinevista Ltd, Khaitan

(India) Ltd, SMS Pharmaceuticals Ltd, Surana Telecom and Power

Ltd, Vardhman Holdings Ltd and Zenith Exports Ltd.

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