Bourses may shift securities of 8 cos to normal trading: Sebi

Capital market watchdog Sebi today said the stock exchanges may consider shifting securities of eight companies to normal trading category from the restricted segment.

Among the companies are Vinaditya Trading Company, Neogem India, Kampani Consultants, FICS Consultancy Services, Esha Media Research, Kumar Wire Cloth Manufacturing Company, Marigold Glass Industries and Indra Industries.

The regulator said bourses may consider shifting the scrips of these eight companies 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, wherein, no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory.

In a circular issued today, Sebi (Securities and Exchange Board of India) 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 condition that 50 per cent of non-promoter holdings in these companies should be in demat or electronic form, the regulator said.

"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 its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange, the regulator said.

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, it added.

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