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The Bombay Stock Exchange has imposed restrictions on trading in 29 stocks for failing to convert at least half of the public shareholding into dematerialised format.
These scrips would be shifted to the trade-to-trade segment or ‘T’ group category with effect from May 23, 2013.
According to a BSE notification, these firms have not achieved 50 per cent public shareholding in dematerialised or demat form as per “the shareholding pattern submitted by the companies for the quarter ended March 2013, or have not submitted the shareholding pattern, or submitted incorrect shareholding pattern for the quarter ended March 2013.’’
SEBI norms
As per SEBI norms, shares of all listed companies having less than 50 per cent public holding in demat form need to be traded only in the trade-to-trade segment.
In this segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.
The stocks, which would be shifted to the segment, include Aadhaar Ventures India, Avon Corporation, Shree Krishna Paper Mills & Industries and SR Industries.
Demat criteria
Moreover, the exchange said that as many as 409 scrips will continue to remain in ‘T’ group since they have not complied with the demat criteria. These companies include Count N Denier (India), Filmcity Media, Hindustan Housing Company and Sunday Exports.
“The companies will remain in ‘T’ group till the next quarterly review,” the BSE said.
Besides, the BSE has retained 481 stocks in the ‘T’ Group “for reasons other than demat criteria“.
Normal trade category
However, the bourse would move 42 stocks out of the ‘T’ group to normal settlement mode from May 23, as they have achieved at least 50 per cent public holding in demat form.
Companies such as Cochin Malabar Estates & Industries, Regency Trust, Precision Electronics, Gujarat Sidhee Cement would be shifted to the normal trade category.
On the NSE, while 14 scrips would remain in the restricted segment for non-compliance with demat norms, stocks of two companies would be shifted to normal trading segment from May 23.
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