BSE Circular: Shifting of 8 Scrips to and from ‘T’ Group w.e.f. August 23, 2023

Introduction: The Bombay Stock Exchange (BSE) plays a pivotal role in the Indian stock market, ensuring transparency and adherence to regulations. BSE’s recent circular (20230816-48), dated August 16, 2023, carries significant implications for listed companies and investors. This circular sheds light on the shifting of scrips to and from the ‘T’ Group, an essential aspect of trading in equity segments.

Analysis: The circular is rooted in SEBI’s regulatory framework, which aims to maintain the integrity of the stock market and protect investors’ interests. Referring to SEBI Circulars issued in the past, the BSE circular outlines the criteria for shifting companies’ scrips to the ‘T’ Group. This action is taken when listed companies fail to meet the mandated public and promoter shareholding requirements in dematerialized (demat) form. The shift to the ‘T’ Group subjects the trading of these securities to a trade-for-trade basis, enhancing surveillance and market stability.

BSE’s circular further categorizes companies into distinct lists, providing comprehensive insights into the transition. The circular includes Annexures containing:

1. List of Companies to Be Transferred: This list outlines the companies that will be moved to the ‘T’ Group. It includes crucial details such as the scrip code, company name, ISIN number, current group classification, and the effective date of the shift. For instance, companies like Maharashtra Corporation Ltd., Cranes Software International, and Vama Industries Limited are among those that will transition to the ‘T’ Group.

2. Companies Remaining in ‘T’ Group: This section enumerates companies that will continue to stay in the ‘T’ Group due to non-compliance with SEBI’s shareholding directives. These companies have either failed to achieve the required public and promoter shareholding or have submitted incorrect shareholding patterns.

3. Companies Moving Out of ‘T’ Group: On the positive side, BSE’s circular also highlights companies that are successfully moving out of the ‘T’ Group. These companies have demonstrated compliance with SEBI’s mandates regarding public and promoter shareholding in demat form. This transition allows them to move from the ‘T’ Group to groups like ‘B’ (equity), ‘X’ (debt), ‘M’ (debt market), or ‘MS’ (limited trading securities).

Conclusion: BSE’s circular (20230816-48) serves as a vital communication to market participants, ensuring that they are well-informed about changes in trading practices. The circular emphasizes BSE’s commitment to maintaining a fair and transparent stock market ecosystem. By adhering to SEBI’s guidelines and making timely announcements, BSE underscores its dedication to investor protection and market integrity.

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BSE

Notice No.: 20230816-48
Notice Date: 16 Aug 2023
Category: Circulars Listed Companies
Segment: Equity
Subject: Shifting of Scrips to and from ‘T’ Group

Pursuant to SEBI Circular no. SEBI/Cir/ISD/1/2010 dated September 2, 2010 read with Circular no. SEBI/Cir/ISD/2/2010 dated October 26, 2010, SEBI Circular no. SEBI/Cir/ISD/1/2012 dated March 30, 2012 and SEBI Circular No. CIR/CFD/CMD/13/2015 dated November 30, 2015, all the listed companies that have not achieved the mandated public/ promoter holding in demat, the trading in securities of such companies will be traded and settled on Trade-for-trade basis i.e. “T” group.

Trading Members are hereby informed that, the companies given in Annexure I have not achieved 50% public shareholding in demat form, as per the shareholding pattern submitted by the companies for the quarter ended June 2023 or have not submitted the shareholding pattern or submitted incorrect shareholding pattern for the quarter ended June 2023 and hence these companies will be transferred to ‘T’/ ‘XT’/ ‘MT’/ ‘TS’ group w.e.f. August 23, 2023.

Further, companies listed in Annexure – II, which are in ‘T’/ ‘XT’/ ’MT’/ ‘TS’ group will continue to remain in ‘T’/ ‘XT’/ ‘MT’ / ‘TS’ group since they have either not achieved at least 50% public holding and/or 100% promoter holding in demat form as per SEBI directives or have not submitted the shareholding pattern or have submitted incorrect shareholding pattern for the quarter ended June 2023.

The companies will remain in ‘T’/ ‘XT’ / ’MT’ / ‘TS’ group till the next quarterly review.

The companies given in Annexure III which are in ‘T’/ ‘XT’/ ‘MT’ / ‘TS’ group will continue to remain in ‘T’/ ‘XT’/ ‘MT’ / ‘TS’ group for reasons other than demat criteria as per aforesaid SEBI circulars.

Moreover, the companies listed in Annexure – IV which have reported that they have achieved at least 50% public holding and 100% promoter holding in demat form in the shareholding pattern submitted for the quarter ended June 2023 will be transferred from ‘T’/ ‘XT’/ ‘MT’/ ‘TS’ group to ‘B’ / ‘X’ / ‘M’ / ‘MS’ groups and in the normal settlement mode w.e.f. August 23, 2023.

In case of any query / clarification, members may please contact on [email protected]

Annexure I

List of scrips to be transferred to T/ XT/ MT/ TS group with effect from August 23, 2023