Exchanges may shift 8 cos to normal trading: SEBI

India Infoline News Service | Mumbai |

At least 50% of other than promoter holdings are in demat mode before shifting the trading in the securities of normal rolling settlement

Market regulator SEBI said stock exchanges may consider transferring securities of eight firms to normal trading category from the restricted segment.

The eight companies which could be shifted are Jauss Polymers, Malti Textiles Mills, Techtrek India, Combat Drugs, Mehta Housing Finance, Essen Supplements India, Adi Rasayan and Shree Ganesh Biotech (India) Ltd.

SEBI said that 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.

At least 50% of other than promoter holdings are in dematerialized mode before shifting the trading in the securities of the company from TFTS to normal Rolling Settlement, SEBI said in notification on Tuesday.

The listed companies should obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange/s. However, if an issuer-company does not have a separate RTA, it may obtain a certificate from a practicing company Secretary/Chartered Accountant and submit the same to the stock exchange/s, it added.

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.

SEBI has advised the stock exchanges to report to it the action taken in this regard in the monthly/quarterly development report.
 

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