 "BSE slaps restrictions on 29 scrips for failure to meet norms")
The bourse would shift these scrips to the trade-to-trade segment or ‘T’ group category with effect from May 23, 2013.
The BSE notification said these firms had not achieved 50 per cent public shareholding in dematerialised or demat form according to “the shareholding pattern submitted by the companies for the quarter ended March 2013, or had not submitted the shareholding pattern, or submitted incorrect shareholding pattern for the quarter ended March”.
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According to Securities and Exchange Board of India (Sebi) norms, shares of all listed companies having less than 50 per cent public holding in demat form are to be traded only in the ‘trade-for-trade’ segment of the exchanges. In the trade-to-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.
The stocks which would be shifted to the segment include, Aadhaar Ventures India, Avon Corporation, Shree Krishna Paper Mills & Industries and SR Industries.
The exchange also said as many as 409 scrips could continue to remain in the ‘T’ group since they had not complied with the demat criteria. These companies included Count N Denier (India), Filmcity Media, Hindustan Housing Company and Sunday Exports.
“The companies will remain in the ‘T’ group till the next quarterly review,” BSE said.
Besides, BSE has retained 481 stocks in the ‘T’ group “for reasons other than demat criteria”.
However, the bourse would move 42 stocks out of the ‘T’ group to normal settlement mode from May 23, as these have achieved atleast 50 per cent public holding in demat form.
Companies such as Cochin Malabar Estates & Industries, Regency Trust, Precision Electronics and Gujarat Sidhee Cement would be shifted to the normal trade category.
On the NSE, while 14 scrips would remain in the restricted segment for non-compliance with demat norms, stocks of two companies would be shifted to normal trading segment from May 23.