Mumbai: Market regulator SEBI Monday said the stock exchanges may consider shifting securities of seven firms to normal trading category from the restricted segment.
The scrips that could be shifted are Kailash Auto Finance, Apte Amalgamations, Redex Protech, High Street Filatex, Rekvina Laboratories, Matru-Smriti Traders and the Hindustan Housing Company.
Securities and Exchange Board of India (SEBI) said the bourses may consider shifting the scrips of these firms from the 'Trade for Trade Settlement (TFTS)' to a 'Normal Rolling Settlement' as these firms 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 are mandatory.
In a circular issued today, the regulator has advised the bourses to report to it the action taken in this regard in the monthly/quarterly development report.
The shifting is subject to the condition that 50 percent of non-promoter holdings in these companies should be in demat or electronic form.
"The stock exchanges may consider shifting the trading in these securities to normal Rolling Settlement subject to the following: at least 50 percent 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 Registrar and Transfer Agent (RTA) and submit it 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 practising company Secretary/Chartered Accountant and submit the same to the stock exchange, the regulator added.
Besides, SEBI said the securities could be shifted to the normal category if "there are no other grounds/reasons for continuation of the trading in TFTS".