BSE to shift stocks of 19 firms to restricted trading segment for violating rules

Leading stock exchange BSE will shift stocks of 19 firms to the restricted trading category for not complying with listing rules, relating to corporate governance norms, from Friday.

In a circular, BSE said it would shift 19 scrips to the 'Z' group, wherein their scrips would be settled on trade-for-trade basis.

Under the trade-for-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.

The stocks to be moved to 'Z' group are Vishwamitra Financial Services, Murli Industries, Aviva Industries, IFL Promoters, Sagar Tourist Resorts, Indo-Asian Projects, Ador Multiproducts and Jayavant Products.

"The scrips will be transferred to 'Z' group with effect from February 26, 2016, due to noncompliance for two consecutive quarters -- September and December 2015 for the Regulation 27(2) of Securities and Exchange Board of India (Sebi) (Listing Obligations and Disclosure Requirements) Regulations, 2015," the exchange noted.

Regulation 27 (2) pertains to non-submission of the corporate governance compliance report within the stipulated period.

The 'Z' group includes companies which have failed to comply with the listing requirements and/or have failed to resolve investor complaints and/or have not made the required arrangements with the depositories - CDSL and NSDL - for dematerialisation of their securities.