Bourses may shift 7 scrips to normal trading: Sebi

Tags: News
Market watchdog Sebi today said stock exchanges may consider shifting securities of seven companies, including Noble Polymers and Adarsh Mercantile, to normal trading category from the restricted segment as the firms have established connectivity with the depositories.

The seven companies which could be shifted are: Panorama Capital Market, Noble Polymers, Adarsh Mercantile, Panafic Industrials, Classic Global Finance and Capital, Appu Marketing and Manufacturing and Jackson Investments.

The Securities and Exchange Board of India (Sebi) said that bourses "may consider shifting" these securities from the 'Trade for Trade Settlement (TFTS)' to a 'Normal Rolling Settlement' as these firms have established connectivity with both depositories — NSDL and 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.

In a circular issued today, the regulator has advised the 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.

"...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".

EDITORIAL OF THE DAY

  • Annual reports make sense only if accountable governance is in place

    It’s a sign of a lack of imagination to expect an annual report by a party in power to pull out some impressive performance given the complex nature

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Amita Sharma

Political rhetoric makes for counter poetry

Poetic flourishes flavour politics. Ghalib and Hafez flowed profusely to ...

Zehra Naqvi

Watch your words, for they can kill

You must’ve heard the ph­rase ‘if looks could kill’. Ever ...

Dharmendra Khandal

Biodiversity day has come and gone. Yet again

Every year on May 22, world celebrates international biodiversity day. ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture