SEBI asks SEs to shift companies linked to NSDL and CDSL to rolling settlement
28 Jan 2011
Stock exchanges should consider shifting trading in the stocks of companies listed in the `A' group that have established connectivity with both the depositories during November 2010 to normal rolling settlement, subject to their fulfilling other conditions, the Securities and Exchange Board of India (SEBI) said in a circular to stock exchanges.
To be eligible to be shifted to normal rolling settlement, a company should have at least 50 per cent of its equity as other than promoter holdings. These should be in the dematerialised mode before shifting the trading in the securities of the company from TFTS to normal rolling settlement, SEBI said.
For this, the listed companies should submit a certificate obtained from its registrar and transfer agent to the stock exchange. However, if an issuer-company does not have a separate RTA, it may obtain a certificate from a practicing company secretary or chartered accountant and submit the same to the stock exchange.
There are no other grounds/reasons for continuation of the trading in TFTS, the market regulator said in its circular.
SEBI has asked stock exchanges to report the action taken in this regard in the monthly/ quarterly development report.
