BSE, NSE To Suspend Trading In Up To Nine Firms From Sept. 10
Leading bourses BSE and the National Stock Exchange will suspend trading in shares of as many as nine firms, including banking fraud accused Mehul Choksi’s Gitanjali Gems, from Sept. 10, for not complying with listing norms pertaining to submission of financial results.
However, if any company complies with the provisions of the Listing Obligations and Disclosure Requirements regulations on or before the date prescribed by the exchanges, the trading in its security will not be suspended, according to separate communications dated Aug. 17 from the exchanges.
In case of the BSE, the date is Sept. 4, while for the NSE, it is Sept. 5.
While both the exchanges will together suspend Gitanjali Gems, Amtek Auto, Easun Reyrolle and Panoramic Universal Ltd., the BSE will suspend Thambbi Modern Spinning Mills, Indo Pacific Projects, Haryana Financial Corporation, Noble Polymers Ltd. and Samruddhi Realty as well.
Trading in securities of the nine companies will be suspended from Sept. 10, 2018 on account of non-compliance with Regulation 33 of LODR Regulations for two consecutive quarters—December 2017 and March 2018, the BSE said in a notice. Regulation 33 pertains to submission of financial results.
With regard to Samruddhi Realty and Noble Polymers, the BSE said both the firms have submitted the financial results but “not paid the applicable fines.” Also, the entire promoter shareholding of the firms have been frozen from Aug. 17 till further notice, the exchanges said.
In a circular, the NSE said if the companies fail to comply with the provisions of LODR Regulations on or before Sept. 5, then trading in their equity shares will be suspended from Sept. 10 and the suspension will continue till the time they comply.
Also, 15 days after the suspensions are in effect, trading in the shares of non-compliant companies will be allowed on trade-for-trade basis in ‘Z’ group only on the first trading day of every week for six months.
The Z group includes companies which have failed to comply with its listing requirements and or have failed to resolve investor complaints and or have not made the required arrangements with the depositories—CDSL and NSDL—for de-materialisation of their securities.