Moneycontrol
Aug 11, 2017 09:46 PM IST | Source: PTI

Trading in Parsvnath, 5 others to resume from Monday

Sebi, on August 7, had asked stock exchanges to restrict trading in shares of 331 "suspected shell companies", some of which have investments by several well-known domestic and foreign investors.

Leading bourses NSE and BSE today said trading will resume in shares of Parsvnath Developers and three others from Monday after the SAT stayed curbs imposed on these companies. Besides, shares of two companies -- Kavit Industries and Kkalpana Industries (India) Ltd -- listed only on the BSE will start trading from Monday. Apart from Parsvnath, three other companies are listed on both the exchanges. These are SQS India BFSI, Pincon Spirit, and Signet Industries. The shares of these companies will be moved out of GSM (graded surveillance measures) framework and will be available for trading with effect from August 14, the exchanges said in similarly-worded circulars.

Parsvnath will be allowed to trade in a price band of 10 percent while the same will be 5 per cent for Kavit Industries and 20 percent for the other four.

The move comes after the Securities Appellate Tribunal (SAT) today stayed trading restrictions imposed on these six companies, which figured in a list of 331 "suspected shell companies" referred by the government to Sebi. The appellants had submitted their respective financials, along with other filings, before SAT to establish that they are not shell companies and are in compliance with all regulations.

Besides, trading in JKumar Infraprojects and Prakash Industries resumed today after SAT yesterday lifted trading restriction imposed on them as per a Sebi directive.

Sebi, on August 7, had asked stock exchanges to restrict trading in shares of 331 "suspected shell companies", some of which have investments by several well-known domestic and foreign investors.

Subsequently, the exchanges had moved such stocks to the highest sixth grade of GSM, where the shares are allowed to trade only on first Monday of the month with no upward movement in price with additional surveillance deposit of 200 percent of trade value to be deposited by the buyers.

Sebi had received the list of such companies from the corporate affairs ministry and many of the 331 firms are under the scanner of the Serious Fraud Investigation Office (SFIO) and the income tax department.

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