Bourses may shift 12 companies to normal trading segment, says Sebi

Market regulator Sebi on Thursday said stock exchanges may consider transferring securities of as many as 12 firms, including Denim Developers and Dalmia Industrial Development, to normal trading category from the restricted segment.

The other firms which could be shifted are Salem Erode Investments, Tinnevelly Tuticorin Investments, Positive Electronics, Vegetable Products, Virat Leasing, Kaushal Investments, Crescent Leasing, Fraser and Company, Synergy Bizcon and Durgesh Merchants.

The Securities and Exchange Board of India (Sebi) said these firms are eligible for shifting from the 'Trade for Trade Settlement (TFTS)' to a 'Normal Rolling Settlement' as they have established connectivity with both depositories - NSDL and CDSL.

The 'trade for trade' segment is a restricted category, wherein, no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory.

In a circular issued on Thursday, Sebi has 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 per cent of non-promoter holdings in these companies should be in dematerialised form.

The stock exchanges may consider shifting the trading in these securities to normal Rolling Settlement subject to the following: at least 50 per cent 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.

In case, an issuer company does not have a separate RTA, it may obtain a certificate in this regard from a practising company Secretary/Chartered Accountant and submit the same to the stock exchange, the regulator added. Besides, Sebi said the securities could be shifted to the normal category if there are no other grounds/reasons for continuation of the trading in TFTS.