NSE to shift 86 companies to restricted trade segment from Friday

The National Stock Exchange (NSE) has decided to shift stocks of 86 companies, including Essar Oil, Provogue (India) Ltd and Lanco Industries, to the restricted trade category from Friday as part of surveillance measures.

Some other stocks which would be moved to trade-to-trade category or "T" group are-- GVK Power & Infrastructure Ltd, Gujarat NRE Coke Ltd, IL&FS Engineering and Construction Company Ltd, IVRCL Ltd, Pipavav Defence and Offshore Engineering Company Ltd and Network18 Media & Investments Ltd.

These stocks would be transferred to restricted trade segment from Friday, June 13, the exchange said in a circular yesterday.

In 'T' segment no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.

The exchange said the decision is part of a surveillance review to ensure market safety and safeguard the interest of investors.

The NSE has asked its members "to take adequate precaution" while trading in these stocks. It said, however, the transfer of security for trading and settlement on a trade-to-trade basis "is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company".

These stocks would attract a circuit filter of up to five per cent which would be the maximum permissible limit within which the share price can move.

Meanwhile, NSE also said that as many as 421 other stocks would continue in the trade-for-trade segment on its platform.