Bourses may shift 12 stocks to normal trade segment: Sebi

Written by Press Trust of India | Mumbai | Updated: Mar 12 2014, 10:49am hrs
Capital market regulator Sebi on Tuesday said stock exchanges may consider moving securities of 12 firms that have established connectivity with depositories to normal trading category from the restricted segment. The 12 stocks which could be transferred to the normal trading category include Triveni Enterprises, Technojet Consultants, Quasar India, Boston Leasing and Finance and Creative Merchants.

In a circular issued on Tuesday, Sebi said the bourses may consider shifting the trading in these stocks from the trade-for-trade settlement (TFTS) to a normal-rolling settlement as these firms have established connectivity with both the depositories in the country.

The depositories are National Securities Depository (NSDL) and Central Depository Services (CDSL). The trade-for-trade segment is a restricted category, wherein, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory. Sebi had advised the stock exchanges to report to it the action taken in this regard in the monthly/quarterly development report. The shifting is subject to the condition that 50% of non-promoter holdings in these companies should be in demat or electronic form.

The stock exchanges may consider shifting the trading in these securities to normal Rolling Settlement subject to the following: at least 50% 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 RTA and submit the same to the stock exchange.