Leading stock exchange BSE will shift stocks of 17 firms to the restricted trading category from 29 May, for not complying with listing rules.
According to a notice, the scrips will be transferred to the 'Z' group.
The stocks to be moved include Birla Capital and Financial Services, Birla Transasia Carpets, Dhanalaxmi Roto Spinners, Gangotri Textiles, Hindustan Hardy Spicer, Jay Energy and S Energies, Kernex Microsystems India, Koa Tools India, Krishana Fabrics, Orbit Corporation, Rajdarshan Industries and Ratnamani Agro Industries.
“Scrips will be transferred to the Z group with effect from 29 May, 2017, due to non-compliances for two consecutive quarters i.e. December 2016 and March 2017 for the Regulation 27(2) of Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015,” the BSE said.
The clause 27(2) pertains to non-submission of the corporate governance compliance report within the stipulated period.
“The trades in these scrips executed in the Z group will be settled on trade for trade basis,” the exchange added.
The Z group includes companies that have failed to comply with the listing requirements and/or have failed to resolve investor complaints and/or have not made the required arrangements with the depositories- CDSL and NSDL- for dematerialisation of their securities.