Stock exchanges may shift 16 firms to normal trading: Sebi

Market regulator Securities and Exchange Board of India (Sebi) said on Tuesday that stock exchanges may consider transferring securities of as many as 16 companies to normal trading category from the restricted segment.

Among the companies which could be shifted are Birla Transasia Carpets Ltd, IO System Ltd, Centron Industrial Alliance Ltd, Rajlaxmi Industries Ltd and Jainex Aamcol Ltd.

The market regulator said these firms are eligible for shifting from the 'trade for trade settlement' (TFTS) to 'normal rolling settlement' as they have established connectivity with both depositories - NSDL and CDSL.

The 'trade for trade' segment is a restricted category, wherein no speculative trading is allowed and delivery of shares and payment of the consideration amount is mandatory.

In a circular issued on Tuesday, Sebi has advised the stock exchanges to report to it the action taken in this regard in the monthly or quarterly development report.

The shifting is subject to the condition that 50 per cent of non-promoter holdings in these companies are in dematerialised form.

"The stock exchanges may consider shifting the trading in these securities to normal rolling settlement subject to at least 50 per cent of other than promoter holdings are in dematerialised mode before shifting the trading in the securities of the company from TFTS to normal rolling Settlement," Sebi said.

For this purpose, the listed companies require to obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange.

In case, an issuer company does not have a separate RTA, it may obtain a certificate in this regard from a practicing company secretary or chartered accountant and submit the same to the stock exchange, the regulator added.

Besides, the market regulator said the securities could be shifted to the normal category if "there are no other grounds for continuation of the trading in TFTS".

Other companies that could be transfered to normal trading segment are Sri Kanyaka Investments, Ahmedabad Gases, Dhanvantri Jeevan Rekha, Fomento Resorts And Hotels, Bell Agro Machina, M P Polypropylene, Suryo Foods & Industries, Planter's Polysacks, Joy Realty, Swadeshi Polytex and Shantanu Sheorey Aquakult.