Stock exchanges BSE and NSE have ordered suspension of trading in shares of S Kumars Nationwide and other firms that have been found non-compliant to listing agreement clauses relating to shareholding disclosures.
Trading would be suspended by the Bombay Stock Exchange (BSE) in shares of as many as 13 companies, while National Stock Exchange (NSE) has announced similar action against three companies, two of which are also part of the BSE list.
While trading suspension would begin from June 3 on both the exchanges, the bourses have also ordered freezing of the entire promoter shareholding of the companies with immediate effect till further notice.
Three companies whose share trading would be suspended by NSE are S Kumars Nationwide, Brandhouse Retails and Krishna Engineering Works.
The firms on the BSE's list are Ananthi Constructions, Gee Gee Granites, Ambitious Plastomac Company, Kumbhat Financial Services, Pasari Spinning Mills, Rajesh Malleables, S Kumars Nationwide, Sudev Industries, Meuse Kara & Sungrace Mafatlal, Techno Forge, Brandhouse Retails and Roselabs.
These companies were found to be non-compliant to clause related to timely disclosure of shareholding patterns for two consecutive quarters - September and December 2014.
The trading in their securities will not be suspended if the companies comply to the satisfaction of the exchanges with all the provisions of the Listing Agreement including payment of fines by May 28, the bourses said.
The suspension will continue till the time these companies remain non-compliant to the norms and do not pay 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 the NSE and BSE, 15 days after suspension come into force, trading in the shares of non-compliant companies would be allowed on restricted basis or in 'Trade-to-Trade' basis in Z group only on the first trading day of every week for six months.
Earlier in April, BSE had announced similar action against as many as 14 companies for non-compliance with listing agreement clauses relating to corporate governance norms and shareholding disclosure and had ordered suspension of trading in these companies from May 15.
BSE said that if these firms comply with the norms and are non compliant with Depositories and Participants Regulations then suspension date for these companies would be June 3.