NSE halts trade in 10 stocks for non-compliance
Dec 03 2013 , Mumbai
Excess speculation prompts BSE to shift 38 stocks to T2T group
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.”