New Delhi: Leading stock exchange BSE on Monday said that HMT Ltd will be dropped from central public sector enterprises (CPSE) index from next week. The move comes as HMT is being transferred to ‘Z’ group, wherein its scrips would be settled on trade-for-trade basis.
Under the trade-for-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory. In a circular, BSE said “effective at the open of Monday, 27 February 2017, the stock (HMT) will be dropped” from the S&P BSE CPSE index, which comprises stocks of 44 BSE-listed CPSEs”.
These firms are those where the government owns a controlling stake of 51% or more. Public sector banks are not part of this this index. The ‘Z’ group includes companies which have failed to comply with the listing requirements and/or have failed to resolve investor complaints and/or have not made the required arrangements with the depositories — Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL) — for dematerialisation of their securities.
