The move by the BSE comes as a follow up to a sharp rise in share prices with no corrections in evidence. BSE has taken note of the fact that several penny stocks have appreciated by as much as 6,000-7,000 per cent over the last few months.

The exchange has advised investors that their trading / investment strategies should be in line with their risk bearing capacity as all investments carry risk, the degree of which varies according to the investment strategy adopted. The exchange has told investors to be cautious about stocks, which show a sudden spurt in price or trading activity, especially low price stocks while pointing out that there are no guaranteed returns on investment in stock markets.