NEW DELHI: Shares of Jet AirwaysNSE -15.32 % tanked over 12 per cent in early trade on Thursday after stock exchanges decided to impose restrictions on trading in the airline shares from June 28 as part of preventive surveillance measures to curb excessive volatility.
The scrip was trading 12.60 per cent down at Rs 97.70 on NSE at around 9.34 am (IST), while it was trading 12.73 per cent lower at Rs 96.35 on BSE at around the same time.
In a circular, NSE said shares of the company would 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”.
The decision has been taken jointly by the exchanges and would be effective from June 28, it said.
According to the circular, exchanges have been seeking clarification from the company in the recent past with respect to various rumours floating in the market. However, the company has failed to provide prompt responses and the responses received are not clear and satisfactory.
With regard to declaration of financial results for the year ended March 2019, Jet Airways earlier said that it is not in position to consider and approve the audited financial results for FY19.
“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,” NSE said in a circular.
0 Comments