Sebi says exchanges can shift 16 stocks to normal trading

Capital market regulator Sebi today said bourses may consider moving stocks of 16 companies

RELATED ARTICLES

to normal trading category from the restricted segment.

Milk Partners India, York Exports, Capital Trade Links, Mega Nirman & Industries, Shree Karthik Papers, Vitan Agro Industries, Asia Capital and Meenakshi Enterprises are among the companies which could be shifted to the normal trading category on the stock exchanges.

Other firms are Akashdeep Metal Industries, Mercantile Ventures, SAB Industries, Potential Investments and Finance, Tarini Enterprises, Nishtha Finance and Investments, Econo Trade (India) and Associated Cereals.

According to the Securities and Exchange Board of India (Sebi), the bourses "may consider shifting" these securities from the 'Trade for Trade Settlement (TFTS)' to a 'Normal Rolling Settlement' as these companies "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 market watchdog 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 are required 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".

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Indian-promoted global corporations must follow accounting best practices

    The international advisory board (IAB) of capital market regulator Securities and Exchange Board of India (Sebi) has suggested that separate governanc

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Cost of education must be controlled

In India, we pay very little attention to the cost ...

Rajgopal Nidamboor

Focus to keep your daily qualms at bay

Philosophers and scientists have, for long, compared the human brain ...

Gautam Gupta

What we can learn from the French fashion scene

It was a pleasure and a treat to experience one ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture