BSE places trading restrictions on shares of 104 companies
12 Apr 2013
The Bombay Stock Exchange today announced plans to shift as many as 104 stocks to the 'restricted trade category' from Friday in order to ensure market safety.
The scrips, which would be shifted to the trade-to-trade segment include major companies like Triveni Engineering & Industries, Sterling Biotech, Khaitan Electricals and Uttam Sugar Mills.
In the trade-to-trade segment or the 'T' group category, no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory, a BSE statement said.
The move is part of preventive surveillance measures to ensure market safety and to safeguard the interest of investors and has been taken in consultation with the Securities & Exchange Board of India, BSE said.
India's premier exchange has asked the trading members to take adequate precaution while trading in these scrips "as the settlement will be done on trade-to-trade basis and no netting off positions will be allowed".
However, it said "the 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".
''This is a temporary measure and will be periodically reviewed depending on the market conditions," it added.
The statement said the restricted stocks would attract a low circuit filter - the maximum permissible limit within which the share price can move - of up to 5 per cent.