Stock exchanges BSE and NSE have decided to shift a total 50 companies to the restricted trading segment from May 10 to ensure safety of investors in the capital markets.
BSE said it would be shifting as many as 41 scrips to the trade-to-trade or the 'T' or 'XT' group segment, while the National Stock Exchange (NSE) has decided to move nine stocks to the category, the bourses said in separate notices.
The stocks to be moved to the 'T' group on both the bourses include California Software Company, Hind Syntex, Prakash Constrowell, Visesh Infotecnics and Noesis Industries.
Under the trade-to-trade segment no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.
The move is a part of surveillance review and with a view to ensure market safety and safeguard the interest of investors, the exchanges said.
The exchanges have asked trading members "to take adequate precaution" while trading in these scrips.
"Members are requested to take adequate precaution while trading in the above securities, as the settlement will be done on trade-to-trade basis and no netting off will be allowed," they added.
Further, the bourses said that the "transfer of security for trading and settlement on a trade-to-trade basis is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company".
These stocks would attract a price band of 5 per cent, which would be the maximum permissible limit within which the share price can move.
Besides, BSE and NSE also issued a list of stocks that would continue in the trade-to-trade segment on their respective platforms.
While BSE has identified 160 companies whose securities will remain under restricted category, NSE has listed 58 companies.
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