Exchanges may shift 16 cos to normal trading: SEBI

For this purpose, the companies are required to obtain a certificate from registrar and transfer agent and submit it to the stock exchange

July 31, 2013 2:00 IST | India Infoline News Service
Market regulator SEBI (Securities and Exchange Board of India) said stock exchanges may consider transferring securities of as many as 16 companies to normal trading category from the restricted segment.

"The stock exchanges may consider shifting the trading in these securities to normal rolling settlement subject to at least 50 percent 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 in a circular on Tuesday.

For this purpose, the listed companies are required to obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange, it added.

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, the regulator added.

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

Among the companies which could be shifted are Birla Transasia Carpets, IO System, Centron Industrial Alliance, Rajlaxmi Industries and Jainex Aamcol.

The 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.

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