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<h1>SEBI Circular: Companies Must Meet Dematerialization Criteria to Shift from Trade for Trade to Normal Settlement.</h1> The circular issued by SEBI on December 17, 2012, addresses the eligibility of certain companies to transition from Trade for Trade Settlement (TFTS) to Normal Rolling Settlement. Companies listed in Annexure 'A' have established connectivity with both NSDL and CDSL depositories. To qualify for this shift, at least 50% of non-promoter holdings must be in dematerialized form, verified by a Registrar and Transfer Agent or a certified professional. Stock exchanges are required to ensure no other reasons exist for maintaining TFTS and must report actions taken to SEBI in their development reports.