BSE to shift stocks to restricted segment for violating rules

The exchange said it would shift 10 scrips to the 'Z' group, wherein their scrips would be settled on trade-for-trade basis

Leading stock exchange BSE will shift stocks of 10 firms to the restricted trading category for not complying with listing rules, relating to corporate governance norms and shareholding disclosures, from December 11.

The action follows non-compliance with the norm by listed companies for consecutive quarters. The informations are required to be disclosed for the benefit of investors.

In a circular, BSE said it would shift 10 scrips to the 'Z' group, wherein their scrips would be settled on trade-for-trade basis.

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

The stocks to be moved to 'Z' group are CTIL Ltd, Digital Electronics, DMC Education, Finaventure Capital, Hind Industries, Ind Agiv Commerce, Positive Electronics, Varun Mercantile, Vishal Malleables and Weizmann Fincorp.

These scrips will be transferred with effect from "December 11, 2015, due to non compliances for two consecutive quarters - June 2015 and September 2015 - for the Clauses 35 and/or Clause 49 of the then prevailing Listing Agreement."

The 'Z' group 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.

From December 8, BSE will move stocks of 65 companies to T Group, while NSE would transfer 17 stocks to such segment, the exchanges said.

The stocks to be transferred include Arvind Infrastructure, Raj Oil Mills, Kesoram Industries, GI Engineering Solutions, Khaitan (India), Shah Alloys, Vaswani Industries and Tijaria Polypipes.