Bourses may shift 11 firms to normal trading category: Sebi

Market regulator Sebi today said stock exchanges may consider transferring securities of as many as 11 companies to normal trading category from the restricted segment.

Among the companies which could be shifted are Thacker & Company, Voltaire Leasing & Finance, Pretto Leather Industries, MIPCO Seamless Rings Gujarat, Anugraha Jewellers Artech Power Products and Bhagyashree Leasing & Finance.

Besides, KDJ Holidayscapes & Resorts, Boston Teknowsys (India) Ltd, Arnold Holdings and Satya Miners & Transporters could be transfered to normal trading segment.

In a circular issued here today, 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 -- National Securities Depository Ltd (NSDL ) and Central Depository Services (India) Ltd (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.

Sebi has advised the stock exchanges to report to the regulator about the action taken in this regard in the monthly or quarterly development report, it said.

The shifting is subject to the condition that 50% of non-promoter holdings in these companies are in dematerialised form.

"The stock exchanges may consider shifting the trading in these securities to normal rolling settlement provided 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 are required 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 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."