Bourses may shift 12 stocks to normal trade segment: Sebi

Tags: News
Capital market regulator Sebi today said stock exchanges may consider moving securities of 12 firms that have established connectivity with depositories to normal trading category from the restricted segment.

The 12 stocks which could be transferred to the normal trading category include Triveni Enterprises, Technojet Consultants, Quasar India, Boston Leasing and Finance and Creative Merchants.

In a circular issued today, Sebi said the bourses "may consider shifting the trading" in these stocks from the 'Trade for Trade Settlement (TFTS)' to a 'Normal Rolling Settlement' as these firms have established connectivity with both the depositories in the country.

The depositories are -- National Securities Depository Ltd (NSDL) and Central Depository Services (India) Ltd (CDSL).

The 'trade for trade' segment is a restricted category, wherein, no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory.

The Securities and Exchange Board of India (Sebi) has advised the stock exchanges to report to it the action taken in this regard in the monthly/quarterly development report.

The shifting is subject to the condition that 50 per cent of

non-promoter holdings in these companies should be in demat or electronic form.

"The stock exchanges may consider shifting the trading in these securities to normal Rolling Settlement subject to the following: at least 50 per cent of other than promoter holdings are in dematerialised mode before shifting the trading in the securities of the company from TFTS to normal Rolling Settlement," Sebi said.

For this purpose, the listed companies require to obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange.

In case an issuer company does not have a separate RTA, it may obtain a certificate in this regard from a practising Company Secretary/Chartered Accountant and submit the same to the stock exchange, the regulator added.

Besides, Sebi said the securities could be shifted to the normal category if "there are no other grounds/reasons for continuation of the trading in TFTS".

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