BSE, NSE suspend share trading for non-compliant companies

Tags: Stock Market
Premier bourses BSE and NSE have decided to suspend trading in securities of companies found to be non-compliant with listing agreement clauses relating to corporate governance norms and shareholding disclosures.

Trading has been suspended by BSE in shares of as many as 16 companies. The NSE has announced similar action against four companies, three of which - including Birla Power Solutions - are also part of the BSE list.

While trading in securities of the companies would be suspended from August 26, the exchanges also ordered freezing of the entire promoter shareholding of these firms with immediate effect till further notice.

Capital markets regulator Sebi asked the stock exchanges, last year, to put in place Standard Operating Procedure (SOP) for suspension and revocation of equity shares of listed entities for non-compliance of certain clauses of the Listing Agreement.

Accordingly, the two bourses have taken action against companies which have been found to be non-compliant to clauses related to corporate governance and timely disclosure of shareholding patterns for two consecutive quarters -- that October-December 2013 and the quarter ended March, 31, 2014.

In case any of these companies comply to the satisfaction of the exchange, with all the provisions of the Listing Agreement including payment of fines on or before August 20, 2014, the trading in their securities "will not be suspended".

Otherwise, the suspension will continue till such time the company complies including payment of fine.

The revocation of suspension would be subject to the companies further complying with the procedure and all extant norms prescribed for revocation of suspension.

According to separate circulars issued by NSE and BSE, 15 days after suspension has been effected, trading in the shares of non-compliant companies would be allowed on restricted basis or in 'Trade for Trade basis in Z group' only on the first trading day of every week for six months.

The four companies whose share trading has been suspended by NSE are -- Asian Electronics, Birla Power Solutions, KDL Biotech and Kitply Industries.

The companies on the BSE's suspension list include Anu's Laboratories, Asian Electronics, Birla Power Solutions, CCS Infotech, Dhanus Technologies, Excell Glasses, Hanjer Fibres, In House Productions, Indo Bonito Multinational, KDL Biotech, Krishna Ferro Products, Rishab Financial Services, Rockland Thermionics, S Forgings & Engineering, Fact Enterprise and Texplast Industries.

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