Leading stock exchange BSE will shift stocks of seven firms to the restricted trading category from August 26 for not complying with listing obligations and disclosure norms.
In a circular, BSE said it would shift the scrips to the Z group, wherein their scrips would be settled on trade-for-trade basis.
Under the trade-for-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount is mandatory.
Broadcast Initiatives, FE (India) Ltd, GEI Industrial Systems, Kyra Landscapes, Lumax Automotive Systems, Tirupati Inks and VHCL Industries will be transferred to Z group with effect from August 26, due to non compliances for two consecutive quarters March 2016 and June 2016 for the Regulation 27(2) of Sebi (Listing Obligations and Disclosure Requirements) Regulations.
Regulation 27 (2) pertains to submission of the corporate governance compliance report within the stipulated period.
The Z group includes companies which 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.