NEW DELHI: Stock exchanges will impose restrictions on buying and selling in Jet Airways stocks from June 28 as a part of preventive surveillance measures to curb over the top volatility, in step with a round. Cash-starved Jet Airways suspended operations in April and lenders are operating on ways for revival of the airline.
In a round, NSE stated stocks of the corporate could be shifted from "rolling segment to trade for trade segment, wherein the settlement in the scrip will take place on gross basis with 100 per cent upfront margin and 5 per cent price band".
There are restrictions in buying and selling of stocks that are under industry for industry segment.
The decision has been taken collectively via the exchanges and could be effective from June 28, it stated.
According to the round, the corporate has failed to offer recommended responses to queries of exchanges regarding various rumours.
The responses won "are not clear and satisfactory", it added.
Also, the corporate is not in a position to believe and approve audited monetary results for the 12 months ended March 2019 and there also are observations made via 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 round stated.
Shares of Jet Airways fell 2 in keeping with cent to near at Rs 110.10 at the NSE on Wednesday. It declined 1.38 in keeping with cent to end at Rs 110.40 at the BSE.
In a round, NSE stated stocks of the corporate could be shifted from "rolling segment to trade for trade segment, wherein the settlement in the scrip will take place on gross basis with 100 per cent upfront margin and 5 per cent price band".
There are restrictions in buying and selling of stocks that are under industry for industry segment.
The decision has been taken collectively via the exchanges and could be effective from June 28, it stated.
According to the round, the corporate has failed to offer recommended responses to queries of exchanges regarding various rumours.
The responses won "are not clear and satisfactory", it added.
Also, the corporate is not in a position to believe and approve audited monetary results for the 12 months ended March 2019 and there also are observations made via 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 round stated.
Shares of Jet Airways fell 2 in keeping with cent to near at Rs 110.10 at the NSE on Wednesday. It declined 1.38 in keeping with cent to end at Rs 110.40 at the BSE.
Stock exchanges to impose trading restrictions on Jet Airways shares
![Stock exchanges to impose trading restrictions on Jet Airways shares]()
Reviewed by Kailash
on
June 12, 2019
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