BSE Advises Compulsory Demat for B2 Group Companies

The Governing Board of the Exchange had inter-alia decided to advise all companies listed in B2 group on the Exchange to sign agreements with both Depositories, i.e., Central Depository Services (I) Ltd. (CDSL) & National Securities Depositories Ltd. (NSDL) by April 30, 2001 so that trading in their scrips may be transferred to compulsory demat mode for all investors. The move is in line with promoting safety and efficiency in the capital markets.

The Governing Board had further decided that if such B2 group companies fail to do so then trading in their scrips may be transferred to Trade for Trade basis. The companies were advised accordingly. The Exchange has since received requests from some of the companies in B2 group expressing difficulties in adhering to the time schedule and have requested for extension of time. Accordingly, it has been decided to give time upto May 31, 2001 to B2 group companies to comply with the requirement.

The companies in B2 group, which have not signed the agreements are, therefore, advised to sign the agreements, with both the Depositories by May 31, 2001, failing which, the settlement of trades in their equity shares may be permitted on Trade for Trade basis as per the decision of the Governing Board.

Dr. M. Vaish
Executive Director

May 10, 2001