Bourses may shift 7 scrips to normal trading: Sebi

The Securities and Exchange Board of India (Sebi) today said the stock exchanges might consider shifting securities of seven firms to the normal trading category from the restricted segment.

The scrips that could be shifted are Kailash Auto Finance, Apte Amalgamations, Redex Protech, High Street Filatex, Rekvina Laboratories, Matru-Smriti Traders and the Hindustan Housing Company.

Sebi said the bourses might consider shifting the scrips of these firms from the trade-to-trade settlement to a normal rolling settlement, as these firms have established connectivity with both — National Securities Depository Ltd and Central Depository Services Ltd.

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 today, the regulator has advised the bourses 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 demat or electronic 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 Registrar and Transfer Agent (RTA) and submit it 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".