Demat failures: Bourses restrict trading
The action comes after these these companies failed to convert a mandatory 50 per cent public shareholding into demat or electronic format, or either they did not submit the shareholding data for July-September quarter or provided the exchanges with wrong shareholding patterns.
The restriction in trading of these 40 stocks comes on top of shares of close to 500 companies already being kept under restricted-trade category by the two bourses.
As per Sebi regulations, shares of all listed companies having less than 50 per cent public holding in demat form need to be traded only in the 'Trade-for-trade' segment of the exchanges. The trading in this segment requires compulsory delivery and these shares can be sold only after a buyer is found at their quoted prices.
In a circular, BSE has listed out 39 such stocks that are being moved to 'Trade-for-Trade' group with effect from November 23, 2012. The NSE has also listed out three such stocks, which includes two named by BSE as well, taking the total number of such stocks to 40.
These include Deccan Chronicle Holdings, Falcon Tyres, Ion Exchange India, Prithvi Information Solutions, Rama Vision and Vikash Metal and Power Ltd.
In addition, BSE said that as many as 459 stocks would continue to be traded on 'Trade-for-Trade' basis due to their non-compliance to Sebi's demat shareholding
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