Leading stock exchange BSE will shift six companies to the restricted trading segment from August 27 for not complying with listing requirements pertaining to corporate governance. The companies are Winsome Diamonds and Jewellery, KGN Industries, HealthFore Technologies, KGN Enterprises, Shri Krishna Prasadam and Layla Textile and Traders. In a notice, the BSE said the six firms will be transferred to ‘Z’ group with effect from August 27, 2018, due to non-compliances for two consecutive quarters — March 2018 and June 2018 — for the regulation 27(2) of LODR (Listing Obligations and Disclosure Requirements) Regulations.
According to regulation 27(2), the listed entity should submit a quarterly compliance report on corporate governance in the format specified by the Securities and Exchange Board of India (Sebi) from time to time to the recognised stock exchange(s) within fifteen days from close of the quarter. “The trades in these scrips executed in ‘Z’ group will be settled on trade-for-trade basis,” the exchange said. Under the trade-for-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.
The BSE also said ABG Shipyard, Shree Bhawani Paper Mills, Jyoti Structures, Todays Writing Instruments, James Hotels, Ramsarup Industries, Gitanjali Gems and Haryana Financial Corporation are also non-compliant of regulation 27(2) and already in the ‘Z’ group.
Introduced by the BSE in July 1999, the ‘Z’ group includes companies which have failed to comply with its listing requirements and/or have failed to resolve investor complaints and/or have not made the required arrangements with the depositories — CDSL and NSDL — for dematerialisation of their securities.