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Exchanges may shift 7 scrips to normal trading: SEBI

SEBI said the securities could be shifted to the normal category if "there are no other grounds for continuation of the trading in TFTS

April 16, 2014 10:05 IST | India Infoline News Service
SEBI (Securities and Exchange Board of India) on Tuesday said stock exchanges may consider shifting securities of seven companies to normal trading category from the restricted segment as the companies have established connectivity with the depositories.
Companies include Panorama Capital Market, Noble Polymers, Adarsh Mercantile, Panafic Industrials, Classic Global Finance, Appu Marketing and Jackson Investments.
SEBI said that stock exchanges, "may consider shifting" these securities from the 'Trade for Trade Settlement (TFTS)' to a 'Normal Rolling Settlement' as these firms have established connectivity with both depositories – NSDL and CDSL.
The 'trade for trade' segment is a restricted category, where no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory.
SEBI has advised the 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.
"...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.
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".

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