India's leading stock exchanges BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) will suspend trading in shares of as many as nine firms, which includes banking fraud accused Mehul Choksi's Gitanjali Gems, from 10 September 2018 for not complying with listing norms pertaining to submission of financial results.
However, if any of these companies comply with the provisions of the LODR (Listing Obligations and Disclosure Requirements) Regulations on or before the date prescribed by the exchanges, the trade of these securities will not be suspended, they said in a separate notification dated 17 August. The date is 4 September in case of the BSE and 4 September for NSE.
Firms whose stocks will be suspended for trading by both the exchanges include:
- Gitanjali Gems
- Amtek Auto
- Easun Reyrolle
- Panoramic Universal
Further, BSE will suspend
- Thambbi Modern Spinning Mills
- Indo Pacific Projects
- Haryana Financial Corporation
- Noble Polymers
- Samruddhi Realty
BSE said in a notice that the suspension of trade for these nine companies was on account of non-compliance with Regulation 33 of LODR Regulations for two consecutive quarters, that is, December 2017 and March 2018. The regulation 33 pertains to the submission of financial results to the exchange. Samruddhi Realty and Noble Polymers, however, have submitted the financial results but "not paid the applicable fines" BSE said.
Additionally, the entire promoter shareholding of the firms have been frozen from August 17 till further notice, the exchanges said.
The suspension will continue till the time they comply. Also, 15 days after the suspension has been effected, trading in the shares of non-compliant companies will be allowed on a 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 dematerialisation of their securities.