Mumbai: Stock exchanges BSE and NSE have ordered share trading suspension for companies found to be non-compliant to listing agreement clauses relating to corporate governance norms and shareholding disclosures. Trading has been suspended by the BSE in shares of as many as 16 companies. The National Stock Exchange or NSE has announced similar action against three companies, two of which are also part of the Bombay Stock Exchange (BSE) list.
While trading suspension would begin from May 15, the exchanges also ordered freezing of the entire promoter shareholding of these companies with immediate effect till further notice. The 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- September and December quarter 2014.
In case any of these companies comply to the satisfaction of the exchanges with all the provisions of the Listing Agreement including payment of fines on or before May 8, the trading in their securities will not be suspended, the bourses said. However, in case these companies fail to comply with the provisions 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 the 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. Three companies whose share trading has been suspended by NSE are Aftek, Glodyne Technoserve and Indus Fila. The companies on the BSE's suspension list include, Acclaim Industries, Satellite Engineering, SMS Techsoft (India), El Forge, Champion Finsec, Doon Valley Rice, DOT COM Global and Valuemart Retail Solutions.
