BSE, NSE to shift companies to restricted trade segment from Aug 23

To ensure safety of investors in the capital markets, leading stock exchanges BSE and NSE have decided to shift over a dozen companies to the restricted trading segment from August 23.

BSE said it would be shifting as many as 11 scrips to the trade-to-trade or the 'T/XT' group segment, while the National Stock Exchange (NSE) has decided to move three stocks to the category, the bourses said in separate notices.

The stocks to be moved to the 'T' group on both the bourses include Surana Corporation, Ess Dee Aluminium and Sudar Industries.

Under the trade-to-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.

The move is a part of surveillance review to ensure market safety and safeguard the interest of investors, the exchanges said.

The exchanges have asked trading members "to take adequate precaution" while trading in these scrips as the settlement would be done on trade-to-trade basis and no netting off would be allowed.

Further, the bourses said the "transfer of security for trading and settlement on 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 price band of five per cent. which would be the maximum permissible limit within which the share price can move.

Besides, BSE and NSE also issued a list of stocks that would continue in the trade-to-trade segment on their respective platforms.

While BSE has identified 626 companies whose securities will remain under restricted category for not meeting the demat criteria, another 246 firms for other than demat criteria and NSE has listed out 16 companies for the restricted trade segment.