Dematerialization of shares of the companies listed on the Exchange

In order to enable the investors to trade in the securities of the companies listed on the Exchange in the dematerialized form, BSE vide its Press Releases and individual letters has advised the companies who have had not signed agreements and established connectivity with both the Depositories, to do so latest by September 30, 2001. However, in spite of the follow- up by the Exchange, there are still a large number of companies in "B2" and "Z" groups, which have not signed agreements and established the required connectivity with both the Depositories. This laxity on the part of these companies deprives the investors from trading in the shares of these companies in the dematerialized form.

In this connection, the Demat Group of SEBI in the meeting held on November 21, 2001, has, inter- alia, decided that the rest of the companies, which have so far not made arrangements for dematerialization of their securities, should be brought under compulsory demat mode by January 2, 2002. Further, the shares of the companies, which do not make arrangement for dematerialization of their shares by January 2, 2002, would be traded on Trade- to -Trade basis.

All the listed companies on the Exchange, which have so far not signed agreements and established connectivity with both the Depositories are, therefore, advised to do so latest by January 2, 2002, failing which the trading and settlement in their shares, would be shifted by the Exchange on Trade- to -Trade basis.