New Delhi: As many as 11 companies including Videocon Industries and Gemini Communication will be shifted to the restricted trading category from 3 September for not complying with listing rules related to shareholding disclosures.
BSE and NSE have said in separate notices that PNB fraud accused Mehul Choksi’s Gitanjali Gems, Amtek Auto and five other companies, which are already in the restricted trade or Z category for other violations, have also failed to comply with disclosure norms.
The move is part of the surveillance review to ensure market safety and safeguard interest of investors.
BSE will be shifting a total of 11 stocks—Bilpower, Cals Refineries, Citizen Yarns, Gemini Communication, Grandma Trading & Agencies, Jyoti Overseas, KGN Enterprises, KGN Industries, Layla Textile and Traders, Omega Ag-Seeds Punjab and Videocon Industries to the trade-to-trade or Z group segment. Of these, the NSE has decided to transfer three common stocks —Videocon Industries, Gemini Communication and Bilpower to the Z category.
In the trade-to-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.
According to the exchanges, these 11 companies have not submitted the shareholding pattern report for two consecutive quarters—March and June this year, violating Sebi’s Listing Obligations and Disclosure Requirements (LODR) regulations.
“These scrips will be transferred to ‘Z’ group with effect from September 3, 2018," they added. The Z group includes companies that have failed to comply with the listing requirements or not resolved investor complaints or not made required arrangements with the depositories—CDSL and NSDL —for dematerialisation of their securities.
Earlier this month, the exchanges announced that they will suspend trading in shares of nine firms including Gitanjali Gems and Amtek Auto from 10 September for non submission of financial results for December 2017 and March 2018 quarters. However, if a company complies with the provisions of the listing regulations on or before the date prescribed by the exchanges, the trading in its security will not be suspended.
In case of BSE, the date is 4 September, while for the NSE, it is September 5.