BSE To Suspend Trading In Ricoh India Shares From December 13
Trading in shares of Ricoh India will be suspended from December 13, the Bombay Stock Exchange announced on Friday. The company had recently released its earnings for quarter-ended December 2015 and March 2016 and as well as full-year earnings for financial year 2015-16. However, it is yet to release earnings for quarter-ended June 2016 and September 2016. The delay in releasing the first and second quarter earnings of financial year 2016-17 has triggered this suspension of stock.
Earlier, Ricoh India had failed to file its financial results for two quarters, ending December 2015 and March 2016. As a result, the normal trading in the stock was suspended in May and it was moved to the Z category of the Bombay Stock Exchange – a category where settlement takes place on a trade-for-trade basis. The exchange allowed delivery-based trading on the stock on the first trading day of every week. Ricoh India had six months to release earnings for four pending quarters – December 2015, March 2016, June 2016 and September 2016. Since the company failed to submit its financials, trading in the stock will be completely suspended starting December 13.
The company has been in the eye of a storm that involved delayed reporting of financials, auditor red flags regarding accounting irregularities, a forensic audit, the suspension of top officials, and a police complaint lodged by Ricoh India against its own officials. Post this, the company received capital infusion worth Rs 1,123 crore from its promoters to tide over the losses suffered to company due to fraud.
For trade to resume on the exchange, the company will have to first file the June 2016 and September 2016 quarter results and pay the prescribed amount of fine. After this, the exchange will permit trading of shares only on a trade-for-trade basis for a period of three months. After this period of three months, trading in the shares of the company will be shifted back to the normal trading category.