SEBI asks bourses to move 36 companies to normal trading category
MDT/PTI 04 September 2012

The bourses have to check whether 50% of non-promoter holdings are in demat or electronic form: SEBI

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) on Monday said the stock exchanges may consider shifting securities from 36 companies from restricted trade category to normal trading, reports PTI.
 
In addition, SEBI also advised the stock exchanges to report to it about the action taken in this regard in the monthly/quarterly development report.
 
SEBI said the stock exchanges may consider to shift the scrips of these (36) companies from the Trade for Trade Settlement (TFTS) to a normal rolling settlement as these firms have established connectivity with both depositories—NSDL and CDSL.
 
In “trade-to-trade” segment, no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory.
 
The scrips which could now be shifted to rolling settlement include Pyramid Trading and Finance, Fortune International, Shree Ganesh Elastoplast and Advance Petrochemicals.
 
However, the bourses have to check whether 50% of non-promoter holdings are in demat or electronic form, SEBI said.
 
“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 Registrar and Transfer Agent (RTA) and submit the same to the stock exchange, the regulator said.
 
In case an issuer company does not have a separate RTA, it may obtain a certificate in this regard from a practicing company secretary or chartered accountant and submit the same to the stock exchange, it added.
 
“There are no other grounds/reasons for continuation of the trading in TFTS,” SEBI said.
 
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