In response to a petition filed by an Ahmedabad-based investor, the Gujarat High Court has granted an interim stay of fifteen days and the restrained the Bombay Stock Exchange (BSE) from moving four scrips to the trade-to-trade segment till the next hearing fixed on September 7.
The judgement passed on Friday orders maintaining a status quo in the case of trading of Mukta Arts, Balaji Telefilms, Fourth Generation and Estar Infotech and continuation of their trading in the weekly settlement mode till September 7.
The petition, filed on August 20 by an Ahmedabad-based investor Dhawal Shah, said the volumes in these four scrips have declined drastically after they were shifted to the trade-to-trade segment from the weekly settlement mode. This was against the interest of every stock-market investor, it alleged.
While Fourth Generation and Estar Infotech were moved to the trade-to-trade segment on July 23, Balaji Telefilms and Mukta Arts were shifted on August 20. The interim stay granted allows continuation of trading of these scrips in the weekly settlement mode till the next hearing of the petition scheduled for September 7.
So till September 7, investors will continue to have the option to square up their deals in these four scrips till the end of the week. In the trade-to-trade segment, effecting delivery and paying up off the consideration in every deal is a mandatory requirement and no squaring up of position is allowed.
