NSE halts trade in 10 stocks for non-compliance

Tags: News

Excess speculation prompts BSE to shift 38 stocks to T2T group

After the Securities and Exchange Board of India (Sebi) directed stock exchanges a fortnight ago to strengthen the surveillance of company disclosures, action has begun against erring firms.

On Tuesday the National Stock Exchange of India (NSE) said it would suspend trading in the shares of 10 companies from December 10 for non-compliance of certain provisions of the listing agreement. Their trading will remain suspended until further notice.

The 10 firms are Amar Remedies, Aqua Logistics, Asian Electronics, Birla Power Solutions, Edserv Softsystems, First Leasing Company of India, Geodesic, KDL Biotech, Kitply Industries and KLG Systel.

In a parallel move on the day, BSE transferred the shares of 38 firms for settlement on a trade-to-trade basis with effect from December 6. Among them are Educomp Solutions, Radhe Developers, Dwarikesh Sugar, Dhampur Sugar and Mawana Sugar.

A BSE official told Financial Chronicle that the action was aimed at curbing speculative trading. In trade-to-trade settlement only delivery-based trade is permitted. On November 18, Sebi had directed the stock exchanges to more effectively monitor compliance of the listing agreement by companies. Sebi chairman UK Sinha had said 1,100 listed firms were non-compliant with the requirement of clause 35 of the listing agreement and 900 not compliant with corporate governance norms.

NSE in a release said, “Notices were sent to the 10 companies seeking reasons for the non-compliance.… The companies have failed to respond satisfactorily.”

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Amit Shah deserved to be crowned President of India, some say

    The Bharatiya Janata Party is now firmly in the hands of Modi’s alter ego, which in plain English means ‘another side of oneself, a second self’

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Necessary yet inadequate boost to education

The finance minister, in the very first minutes of his ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture