SEBI allows normal rolling settlement in 8 companies on bourses

The Securities and Exchange Board of India (SEBI) has recommended eight companies as eligible for shifting from Trade for Trade Settlement (TFTS) to normal rolling settlement on the stock exchanges since these companies have established connectivity with both depositories.

''It is observed from the information provided by the depositories that these companies have established connectivity with both the depositories (NSDL and CDSL),'' SEBI said in a circular.

The companies that have established connectivity with both the depositories include: Jauss Polymers Limited, Malti Textiles Mills Limited, Techtrek India Limited, Combat Drugs Limited, Mehta Housing Finance Limited, Essen Supplements India Limited, Adi Rasayan Limited and Shree Ganesh Biotech (India) Ltd, according to the SEBI circular.

The stock exchanges may consider shifting the trading in these securities to normal rolling settlement subject to the following:

a) At least 50 per cent of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialised mode before shifting the trading in the securities of the company from TFTS to normal Rolling Settlement. For this purpose, the listed companies have to obtain a certificate from its registrar and transfer agent (RTA) and submit the same to the stock exchange/s. However, if an issuer – company does not have a separate RTA, it may obtain a certificate in this regard from a practicing company secretary/chartered accountant and submit the same to the stock exchange/s.

b) There are no other grounds/reasons for continuation of the trading in TFTS.

SEBI has advised stock exchanges to report the action taken in this regard in their monthly/quarterly development reports.