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SEBI adds 19 more shares to demat list

The Securities and Exchange Board of India has decided to abolish the market lot for 31 scrips, in which trading would take place compulsorily in dematerialised form by February 15, 1999.

According to a SEBI release, market lot for 12 of these 31 scrips would be abolished from January 4, 1999 as trading in dematerialised form for all investors in these scrips starts from that date.

SEBI, which had earlier announced the 12 scrips eligible for compulsory demat trading, decided to add another 19 shares to the list, bringing the number of such scrips to 31.

Also, effective from February 15, 1999 trading in demat form would be compulsory for all institutional investors and overseas corporate bodies in scrips of another 65 companies, thus bringing the total number of such companies including UTI units to 304.

Of the 65 companies, 30 have already signed agreements with the National Securities Depository Limited. The balance 35 companies are expected to sign an agreement in the near future, the release said.

The SEBI would write to all the companies to ensure that they sign the agreements on time so that trading in demat form could commence from the stipulated date. The markets regulator could also consider taking appropriate action against companies by informing stock exchanges to temporarily suspend trading if they fail to sign agreements on time.

SEBI is also mulling to encourage brokers and banks to become depository participants. In this regard, SEBI would write to the RBI to discuss the measures on how the banks could be encouraged to become DPs and use their branch network for the purpose.

A committee headed by NSDL managing director C B Bhave would be set up to examine the simplification and standardisation of forms and procedures of depository services.

The SEBI has also taken up the matter of WAN-to-WAN ( wide area network) connectivity of the DPS Network and Depository with the finance ministry and Department of Telecommunications.