BSE to shift 41 companies to restricted trade

Mumbai: Leading stock exchange BSE hasdecided to shift stocks of 41 companies to the restricted trading segment from Thursday to ensure safety in capital markets and safeguard the interest of investors. Another leading bourse National Stock Exchange (NSE) will also move seven securities to this category. Stocks that would be transferred on both the bourses include Euro Ceramics, GI Engineering Solutions, Rasoya Proteins, STL Global, Shri Lakshmi Cotsyn, Surana Industries and Uniply Industries.     

In a circular, the BSE said it would be shifting as many as 41 scrips to the trade-for-trade or the 'T' group segment. In a separate notice, the NSE said it has decided to move seven stocks to this category. These scrips would be traded and settled on trade-to-trade basis effective from April 9, 2015. Under the trade-for-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory. The decision is a part of a surveillance review and to ensure market safety and safeguard the interest of investors, the bourses said.     

The exchanges have asked trading members "to take adequate precaution" while trading in these scrips. "Trading Members should note that transfer of scrips for      trading and settlement on a trade-to-trade basis is purely on account of market surveillance measure and it should not be construed as an adverse action against the company," the bourses said.

"Further, this is a temporary measure and will be reviewed periodically depending on the market conditions," it added. Besides, BSE and NSE also issued a list of stocks that would continue in the trade-for-trade segment on their respective platforms. While BSE has identified 194 companies whose securities will remain under restricted category, NSE has listed 75 companies.