BSE to shift 104 stocks to restricted category

BSE will shift as many as 104 stocks to the restricted trade category from tomorrow. These scrips include Triveni Engineering & Industries, Sterling Biotech, Khaitan Electricals and Uttam Sugar Mills.

In the trade-to-trade segment or the ‘T’ group category, no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory.

The move is part of a preventive surveillance measure to ensure market safety and to safeguard the interest of investors. It has been taken in consultation with the Securities and Exchange Board of India (Sebi), BSE said in a statement.

BSE has asked trading members to take adequate precaution while trading in these scrips, “as the settlement will be done on a trade-to-trade basis and no netting off positions will be allowed”.

However, it said “the transfer of scrips for trading and settlement on a trade-to-trade basis was purely a market surveillance measure and it should not be construed as an adverse action against the company”.  “This is a temporary measure and will be periodically reviewed depending on the market conditions,” BSE added. According to the bourse, the stocks would attract a low circuit filter — the maximum permissible limit within which the share price can move — of up to five per cent.