BSE to transfer 81 cos to restricted trade segment from Nov 8

The Dollar Business Bureau

Bombay Stock Exchange (BSE) on Thursday announced it would transfer shares of 81 companies to the restricted trade category from November 8, as it aims to ensure market safety and safeguard the investors’ interest.

The companies whose stocks will be moved into the restricted segment - T or XT group - include Accel Transmatic, Agio Paper & Industries, DCM Financial Services, Ducon Infratechnologies, Indo City Infotech, Uday Jewellery Industries and Women Networks.

Under the BSE’s T or XT category, no speculative trading is permitted and also shares delivery and payment of consideration amount can become mandatory.

In its circular, BSE has urged its trading members to take appropriate precaution. It said the trading in these 87 scrips as the settlement will be done on trade-to-trade basis and no netting off positions will be allowed.

“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," it said in its announcement.

These stocks will now be at a price band of 5%, and this will be the maximum allowed limit in which the share price can move.

BSE has also identified 77 other companies, eligible for T-Group, but they are currently are in P, Z and ZP Group. It said it would transfer scrips of 30 companies to their original group from their current T/XT Group and transfer scrips of 18 companies to the restricted trade category from November 8.

Some of the companies are Agri-Tech (India) Ltd, Century Extrusions, Farmax India, Gujarat Lease Financing, Radaan Mediaworks India, Prime Securities and Norben Tea & Exports.

BSE has identified another 76 companies, with their shares continuing in the restricted trade segment.