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Bourses may shift 6 scrips to normal trading: Sebi

The shifting is subject to condition that 50% of non-promoter holdings in these companies should be in demat or electronic form

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Press Trust of India Mumbai
Last Updated : Jan 29 2013 | 2:34 PM IST

Market regulator Sebi today said the stock exchanges may consider shifting securities of as many as six companies to normal trading category from the restricted segment.

The scrips which could now be shifted to rolling settlement are Elder Projects, Risa International, Mapro Industries, Surya Industrial Corporation, Croitre Industries and Anandam Rubber Company.

In 'trade-to-trade' segment, no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory.

Additionally, Sebi also advised the bourses to report the regulator about the action taken in this regard in the monthly/quarterly development report.

The Securities and Exchanges Board of India (Sebi) said the stock exchanges may consider shifting the scrips of these six companies 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 shifting is subject to condition that 50 per cent of non-promoter holdings in these companies should be in demat or electronic form.

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"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, the regulator said.

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, it added.

"There are no other grounds/reasons for continuation of the trading in TFTS," Sebi said.

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First Published: Jan 21 2013 | 6:44 PM IST

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