Leading stock exchange BSE on Monday said it will discontinue restricted trade facility in the shares of 18 companies with effect from December 1, in a bid to ensure safety of investors in the capital market.
The move comes after the exchange, in April, had suspended these companies due to non-compliance of provisions of listing agreement.
However, these firms were allowed to trade in restricted segment, or Z group, only on the first trading day of every week for six months. This was permitted only 15 days after suspension had come into effect.
Now, BSE in a circular said: "As the time period of the mandated six months has been completed, the facility of trading in the shares of... non-compliant companies on Trade for Trade basis in Z group on the first trading day of every week will be discontinued with effect from December 1, 2015."
The companies include Aftek, Karma Industries, UG Hotels & Resorts Indus Fila, Glodyne Technoserve, El Forge, Moonbeam Industries, Oswal Spinning & Weaving Mills, Doon Valley Rice and Satellite Engineering.
The exchanges suspended these firms for non-compliance to a Listing Agreement clause relating to timely preparation and disclosure of financial results by a listed company for two consecutive quarters. The results are required to be disclosed by listed companies on stock exchange platform for the benefit of investors.
The suspension follows Sebi guidelines with respect to Standard Operating Procedure (SOP) for suspension and revocation of trading of shares of listed entities for non-compliance of the Listing Agreement that a listed company needs to follow pursuant to its shares getting listed and traded on a stock exchange.