| The BSE had proposed a separate category for scrips under concentrated surveillance, to distinguish them from scrips that failed to comply with listing norms. The second category of scrips will remain in the Z group, while those in the trade-to-trade segment will be shifted to the new T group. |
| BSE officials told Business Standard that a notification on the new segment would be issued tomorrow, and the scrips in the trade-to-trade category would be shifted in due course. |
| At present, the Z group contains scrips that failed to comply with stock exchange regulations and those that showed unusual movement in market rallies. |
| The officials said putting trade-to-trade scrips in the Z category was creating a wrong impression about these companies in the minds of investors. The Z group would remain, they added. |
| The exchange had written a letter to Sebi on November 11, seeking approval for the formation of a separate segment to house scrips under trade-to-trade settlements. |
| In its response, Sebi asked the BSE to ensure "that all appropriate trading and settlement practices as well as surveillance and risk containment measures were made applicable and implemented accordingly in respect of the said group". |
| The BSE and the National Stock Exchange had shifted around 700 scrips last month to the trade-to-trade category as part of surveillance measures. Scrips under this category have to be compulsorily settled and cannot be squared off in a day. |
| After the shift, some companies and investors went to court arguing that the decision had affected trading in their scrips due to the stigma attached to Z-category stocks. |
| Bellary Steels had challenged the BSE's action in transferring the scrip from B2 to Z category. Bellary's advocate, Ravi Goenka, refused to give further details, saying the matter was sub judice. |
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