BSE to shift 5 companies to restricted trade segment from Mar 28

Companies will be transferred to 'Z' group wherein their scrips will be 'settled on trade-for-trade basis'

Leading bourse BSE will shift five companies to the restricted trading category from next week for not complying with regulatory disclosure norms.

The companies would be transferred to 'Z' group wherein their scrips would be "settled on trade-for-trade basis", BSE said in a circular.

The firms to be shifted are Santowin Corporation, Ricoh India, Unno Industries, Beckons Industries and Boston Leasing and Finance.

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

BSE said that these scrips "will be transferred to 'Z' group with effect from March 28, 2016, due to non-compliances for two consecutive quarters - September 2015 and December 2015, for the Clause 41 of the erstwhile Listing Agreement."

Under the provisions of Clause 41 of the listing agreement, companies listed on BSE are required to file with the exchange their quarterly results in a requisite format within 45 days of the end of each quarter.

Meanwhile, BSE also said three other firms -- Jayavant Products, Mahesh Agricultural Implements & Steel Forgings and Vishwamitra Financial Services, which are currently in the 'Z' or 'ZP' group were also non-compliant for two consecutive quarters - September 2015 and December 2015 - of the Clause 41 of the listing agreement.

The 'Z' group was introduced by BSE in July 1999 and includes companies which have failed to comply with the listing requirements and/or have failed to resolve investor complaints and/or have not made the required arrangements with the depositories - CDSL and NSDL - for dematerialisation of their securities.