Monday, July 15, 2013

MALLYA FIRMS GO TO SCRAPS...

Leading bourses BSE and NSE today decided to shift securities of several firms, including Vijay Mallya-led Kingfisher Airlines and United Breweries (Holdings), to the restricted trading category from July 19. The scrips of Reliance MediaWorks and Ramco Systems, among others, would also be moved to the restricted on both stock exchanges. BSE would shift 62 securities to the trade-for-trade or 'T' group, while NSE would transfer 36 stocks to this segment, the stock exchanges said in separate notifications today.
The stocks would be shifted with effect from July 19. In the trade-for-trade segment no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory. As per the bourses, the move is part of the "surveillance review and with a view to ensure market safety and safeguard the interest of investors".
The stock exchanges have 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, they added the transfer of these securities for trading and settlement on a trade-to-trade basis "is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company". These stocks would attract a price band of 5 per cent which would be the maximum permissible limit within which the share price can move. 

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