Both the NSE and BSE have decided to transfer stocks of several companies to restricted trading segment with effect from June 21 to safeguard investor interests.

BSE would shift 28 stocks to the trade-to-trade or ‘T’ group, while NSE would transfer 12 scrips to this category, the bourses said in separate notifications.

Some securities which would be shifted to the ‘T’ group category on both the bourses are — Paramount Communications, Best & Crompton Engineering, Mahindra Ugine Steel Company, Centum Electronics and Pioneer Distilleries.

The trade-to-trade segment does not allow speculative trading and makes delivery of shares and payment of consideration amount mandatory.

Surveillance review

As per BSE and NSE, the move is part of the surveillance review “to ensure market safety and safeguard the interest of investors’’.

The bourses have advised the trading members to take “adequate precaution” while trading in these scrips.

However, the bourses said: “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 stocks 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.

Meanwhile, as many as 56 stocks have been listed by NSE which “will continue in trade-for-trade segment series’’.

Almondz Global Securities, Sun Pharma Advanced Research Company, Denso India and Uniply Industries are among the stocks which would be available for trading in trade-to-trade segment on the NSE.

(This article was published on June 18, 2013)
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