BSE, NSE To Move Jet Airways To Trade-To-Trade Segment From June 28
Bombay Stock Exchange Ltd. and National Stock Exchange will impose trading restrictions on Jet Airways (India) Ltd.’s shares from June 28, as part of preventive surveillance measures to curb excessive volatility. Crisis-hit Jet Airways suspended operations in April and lenders are working on ways for revival of the airline.
In the circular issued Wednesday, NSE said Jet Airways shares would be shifted from "Rolling Segment to Trade for Trade Segment, wherein the settlement in the scrip will take place on gross basis with 100 percent upfront margin and 5 percent price band".
Jet Airways has failed to provide prompt responses to queries of exchanges regarding various rumours, and the responses received "are not clear and satisfactory", it added. The decision has been taken jointly by the BSE and NSE and would be effective from June 28, the circular read.
According to the circular, Jet Airways is not in a position to consider and approve audited financial results for 2018-19 and there are also observations made by the airline's auditor.
"There are concerns with regard to continuity of flow of information about the company which is very vital for the appropriate price discovery in the scrip. Hence trading in the scrip may not reflect the actual status of the company," the circular read.
On Wednesday, Jet Airways shares fell 2 percent to Rs 110.10 apiece on the NSEand declined 1.38 percent to end the day at Rs 110.40 on the BSE.