Ricoh India to shift to Z group; stock drops 6%

The stock ended down 6.4% to Rs 532 as the stock will move to 'Z' group on the BSE from March 28, 2016

Ricoh India ended down 6.4% at Rs 532 as the stock will be shifted from ‘B’ group to ‘Z’ group on the BSE with effect from March 28, 2016.

“Ricoh India, Santowin Corporation, Unno Industries, Beckons Industries and Boston Leasing and Finance will be shifted to ‘Z’ group with effect from March 28, 2016 due to non-compliances for two consecutive quarters i.e. September 2015 and December 2015 for the Clause 41 of the erstwhile Listing Agreement,” BSE said in a notice dated March 18, 2016.

Click here for the BSE statement

The trades in these scrips executed in ‘Z’ group will be settled on trade for trade basis.

If a company is shifted for settlement on trade-to-trade basis, selling or buying of shares in that scrip results into giving or taking delivery of shares at the gross level and no intra-day netting off/squaring off is permitted. The scrips which form part of the 'Z' group are compulsorily settled on a trade-to-trade basis.

In a regulatory filing on February 18 2016, Ricoh India said that it is about to finalise its accounts and will file it in a short time. Further, the reason for the delay in filing was cited as the change in statutory auditors last year, which led to the new auditors taking longer than usual to furnish the signed reports to the Audit Committee.