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SEBI to add 34 stocks to rolling settlement list, 120 to demat list

The Securities and Exchange Board of India today announced the list of 34 more companies in addition to existing ten scrips for compulsory rolling settlement from March 21.

The regulatory body has made this announcement after the review meeting of committees on dematerialisation of securities and rolling settlement held in Bombay today.

The new 34 scrips included Aaftek Infosys, Pentafour Communications, Global Trust, Orchid Chemicals, KLG Systels, Blue Star, Torrent Pharma, Kotak Mahindra Finance, Archies Greetings, Morgan Stanley, Cheminor Drugs, Sundaram Clayton, Container Corporation, IndusInd Bank, Unichem Laboratories, Navneet Publication, GAIL, Marico Industries, Essar Steel, Electro Steel Castings, ITW Signode, Prism Cement, Chambal Fertilizers, Federal Bank, Birla Global, Excel Industries, MRPL, Jindal Strips, Shree Cement, Jindal Iron, Krishna Filament, Indo Rama Synthetics, Ashok Leyland Finance and Morarke Finance Limited.

According to SEBI, contrary to reports about decline in volumes, outstanding positions at the end of the day showed that at least five scrips' trading volumes have been higher on certain days than average trading volumes in last six settlements prior to rolling settlements; post-rolling settlement prices show that on some days, at least in six scrips' post-rolling-settlement prices have been higher.

The committee observed that rolling settlement is necessary for a healthy and safe market as it helps in reduction of risks and lowering of transaction costs in the long run.

SEBI has also decided to add 120 scrips in compulsory demat trading in two phases. In the first phase, top 60 scrips by market value of shares will be included from March 21 and the remaining 60 scrips will be included from May 8, 2000.

Besides these, there are 99 scrips which are now being traded compulsorily in dematerialised form by institutional investors but have not yet signed agreements with CDSL will be traded compulsorily in dematerialised form by all investors from June 26, 2000.

In the meantime, SEBI has already written to these companies to sign the agreements with CDSL as is legally required. SEBI has warned for appropriate action for no-compliance.

There are 44 companies who have already signed agreements with both the depositories as on January 31, 2000. These companies will be traded compulsorily in demat form by institutional investors from March 21, 2000 and by all investors from June 26, 2000.

This takes the above three categories' aggregate to 263, the total number of scrips which will be traded compulsorily in demat form by all investors would be 462.

About the change of names by infotech companies, the SEBI release said that there are 74 companies which have changed names into infotech companies. These companies are traded mainly on the BSE and NSE and also on other exchanges. Some of these companies also have fairly good trading volumes. SEBI has decided that these companies will be included in compulsory rolling settlement from May 8, 2000.

Most of these companies have not signed agreements with the depositories. They will be given time upto March 31, 2000 to sign the agreements with both the depositories failing which action may initiated against them.

About the non-banking finance comapanies' scrips, SEBI said there are 31 NBFCs which are listed and traded on the BSE but whose applications for certificate of registration were rejected by the RBI.

These scrips will also be included for compulsory rolling settlement from May 8, 2000. These companies will be required to sign agreements with both the depositories by March 31, 2000.

Besides, SEBI has also decided to include 17 scrips in which high volatility exhibited for seven weeks or more in the last ten weeks in compulsory rolling setttlement from May 8.

UNI

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