CIRCULAR/MRD/DP/ 09 /2011
To,
All Stock Exchanges
Dear Sir / Madam
Sub: Establishment of Connectivity with both depositories NSDL and CDSL Companies eligible for shifting from Trade for Trade Settlement (TFTS)to normal Rolling Settlement
1.It is observed from the information provided by the depositories that thecompanies listed in Annexure ˜A™ have established connectivity with both thedepositories.
2. The stock exchanges may consider shifting the trading in these securities tonormal Rolling Settlement subject to the following:
a) At least 50% of other than promoter holdings as per clause 35 of ListingAgreement are in dematerialized mode before shifting the trading in thesecurities of the company from TFTS to normal Rolling Settlement. Forthis purpose, the listed companies shall obtain a certificate from itsRegistrar and Transfer Agent (RTA) and submit the same to the stockexchange/s. However, if an issuer-company does not have a separateRTA, it may obtain a certificate in this regard from a practicing companySecretary/Chartered Accountant and submit the same to the stockexchange/s.
b) There are no other grounds/reasons for continuation of the trading inTFTS.
3. The Stock Exchanges are advised to report to SEBI, the action taken in thisregard in the Monthly/Quarterly Development Report.
Yours faithfully,
Harini Balali
Deputy General Manager
022-26449372
email: harinib@sebi.gov.in
