The BSE has decided to move securities of as many as 41 companies to the restricted trading category from August 2, as a measure to ensure market safety.
Amar Remedies, Nitco, Parabolic Drugs, Escorts Finance, Sterling International Enterprises Neha International and Asian Oilfield Services are among the 41 stocks which would be shifted to the trade-to-trade or the ‘T’ group category, BSE said in a notification.
In the trade-to-trade segment no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory. According to BSE, the move is part of the “surveillance review and with a view to ensure market safety and safeguard the interest of investors”.
The stock exchange has advised 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 will be allowed”. However, the bourse said that “the transfer of scrip‘s 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”.
“Further, this is a temporary measure and will be periodically reviewed depending on the market conditions,” it added. These stocks would attract a circuit filter of 5 per cent which would be the maximum permissible limit within which the share price can move.