BSE to shift 25 scrips to restricted trading category, NSE to move 7

Premiere bourses Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have decided to move stocks of several companies to the restricted trading category from August 19 as a measure to safeguard the interest of the investors in the securities market.

The BSE would transfer 25 stocks to the trade-for-trade segment, or the 'T' Group, while NSE would transfer 7 scrips to this category, the bourses said in separate notifications.

Some of the firms which would be shifted to the segment on both the stock exchanges are Cura Technologies, Delta Magnets, Farmax India, Mukand Ltd, Southern Ispat and Energy, Nitesh Estates and JD Orgochem.

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

As per the bourses, the move is part of the surveillance review "to ensure market safety and safeguard the interest of investors". Both the BSE and NSE have advised trading members to take "adequate precaution" while trading in these scrips.

However, they added that "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 securities would attract a circuit filter of up to 5 per cent which would be the maximum permissible limit within which the share price can move.

Besides, the NSE said that as many as 125 stocks including that of United Breweries (Holdings), Kingfisher Airlines, Reliance Broadcast Network and Reliance MediaWorks "will continue in trade-for-trade segment series".