Leading stock exchange BSE today said it will shift as many as 105 companies to the restricted trade category from December 26 as they have failed to pay the annual listing fees.
Among the companies are Gemini Communications, Jindal Cotex, MFS Intercorp, Cyber Media India, Universal Credit & Securities, Sword-Edge Commercials, Asahi Infrastructure & Projects and Bio Green Papers.
According to norms, every listed company is required to pay annual listing fees to the exchange where its securities are listed.
Companies are required to pay an annual listing fees ranging from Rs 1 lakh to Rs 8.06 lakh to the exchange depending upon their listed capital.
Currently, a total of 2,787 companies trade on the BSE.
"In spite of the repeated reminders and show cause notices issued for the non-payment of annual listing fees to defaulting companies, the defaulting companies have failed to pay the arrears of annual listing fees (for the financial year 2015-16) to the exchange," BSE said in a circular.
Accordingly, BSE has decided to transfer defaulting companies from normal segment to Trade-to-Trade Segment with effect from Friday, December 26, 2016.
In case, a company pays the arrears of annual listing fees prior to the start of trading in the trade to trade segment, name of the company will be removed from the final list of the defaulting companies, the exchange said.
Under trade-to-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount is mandatory.
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