The Hindu Business Line : CSE suspends trading in a few stocks

The exchange has informed its members that certain counters are being suspended with immediate effect, in line with the Administrator's order dated November 18.

The companies mentioned by the CSE are: BSR Finance & Construction, PSL Financial Services, Quest Financial Services, Invesca Share & Securities, Vindus Holdings, Shardaraj Tradefin, Securities Development and Valour Construction. The order will remain effective till further notice.

CSE's surveillance department has also informed that steps (for both rolling and physical) have been taken with regard to a few other entities. The latter include Classic Growers, NRC Ltd, Tantia Construction and Adinath Bio-Lab. In these cases, limits have been revised while the stocks concerned have been transferred to the trade-for-trade (TFT) segment.

In a few other cases - such as Emerald Commercial, Globe Stocks & Securities, Konark Commerce and Radiant Financial - the stocks have been transferred to TFT segment.

In another development with regard to calculation of base minimum capital/settlement guarantee fund, CSE has told members the existing approved list of securities has been changed on the basis of `group 1' shares of BSE/NSE. Shares other than those in the new approved list held with the exchange will not be considered.

Quite a few critical issues have come up on Lyons Range lately, sources point out. These include:

* SEBI's order on suspending 11 brokers from dealing in securities. Trading in six companies was also suspended. The brokers had followed "a common modus operandi" of artificially increasing prices and creating false volumes through continuous self deals executed on the same terminal and cross deals amongst themselves.

* SEBI's recent caveat on spiralling prices of small-time stocks, which had CSE speak out against artificially-created arbitrage. CSE advised members to exercise due diligence while transacting in "undeserving" counters.

* CSE's advisory to brokers to exercise greater vigilance about the activities of sub-brokers and clients. The reference was to collating more financial information and details such as large concentration in one or few securities.

Lyons Range sources, which complain about the abject lack of volumes, also refer to the demutualisation of the exchange. CSE had in July submitted a (revised) proposal for demutualisation in line with the BSE (Corporatisation and Demutualisation) Scheme.

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