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SEBI said in a circular on Friday that listed companies would be retained in the normal segment if and only if 100 per cent of its promoter and promoter group shareholding is held in the dematerialised form by September 30.
This has been done to improve transparency in the dealings of promoters especially with respect to pledging of shares or using them as collateral, said SEBI.
Trading in company shares which do not satisfy the above criteria shall be moved to the trade for trade segment, said SEBI. The regulator has asked exchanges to take the latest shareholding pattern.
SEBI had mandated in September last year that listed companies would be traded in the normal segment if and only if the company has achieved dematerialisation of at least 50 per cent of its non-promoter shareholding.
Stock exchanges have been advised to put in place adequate systems and issue necessary guidelines for implementing the above decision.
SEBI has also asked exchanges to amend bye-laws and regulations, disseminate the circular on their Web sites and bring the circular to the notice of listed companies and market intermediaries.
Exchanges have also been asked to communicate the implementation status to SEBI in the monthly report.
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