PNB fraud accused Mehul Choksi is the promoter of Gitanjali Gems. Photo: Priyanka Parashar/Mint
New Delhi: The Bombay Stock Exchange Ltd (BSE) and National Stock will suspend trading in shares of as many as nine firms, including PNB fraud accused Mehul Choksi’s Gitanjali Gems, from 10 September for not complying with listing norms pertaining to submission of financial results.
However, if any company complies with the provisions of the Listing Obligations and Disclosure Requirements (LODR) regulations on or before the date prescribed by the exchanges, the trading in its security will not be suspended, according to separate communications dated 17 August from the exchanges. In case of the BSE, the date is 4 September, while for the NSE, it is 5 September.
While both the exchanges will together suspend Gitanjali Gems, Amtek Auto, Easun Reyrolle and Panoramic Universal, the BSE will suspend Thambbi Modern Spinning Mills, Indo Pacific Projects, Haryana Financial Corporation, Noble Polymers and Samruddhi Realty as well.
Trading in securities of the nine companies will be suspended from 10 September 2018 on account of non-compliance with Regulation 33 of LODR Regulations for two consecutive quarters—December 2017 and March 2018, the BSE said in a notice.
Regulation 33 pertains to submission of financial results. With regard to Samruddhi Realty and Noble Polymers, the BSE said that both the firms have submitted the financial results but “not paid the applicable fines”. Also, the entire promoter shareholding of the firms have been frozen from August 17 till further notice, the exchanges said.
In a circular, the NSE said if the companies fail to comply with the provisions of LODR Regulations on or before 5 September, then trading in their equity shares will be suspended from 10 September and the suspension will continue till the time they comply. Also, 15 days after suspension has been effected, trading in the shares of non-compliant companies will be allowed on 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 dematerialization of their securities.