Leading stock exchange BSE will suspend trading in securities of seven companies from April 18 as they have failed to comply with certain norms for two consecutive quarters. In case they comply with the norms by April 12, they would not face trading suspension.
The firms that face suspension are Birla Shloka Edutech, Divine Multimedia (India) Ltd, Prism Informatics, REI Six Ten Retail, Shreejal Info Hubs, Skypak Service Specialists and Subh Tex (India) Ltd. The exchange has also ordered freezing of the entire promoter shareholding of these companies from March 27 till further notice.
“Trading in securities of the companies (7) will be suspended with effect from April 18, 2017 on account of non-compliance with Regulation 55 A of the Sebi (Depositories and Participants) Regulations 1996 for two consecutive quarters — September and December 2016,” BSE said in a circular.
As Sebi’s Depositories and Participants Regulation 55 A, every firm will have to submit audit report, on a quarterly basis to the bourse, about reconciliation of total issued capital, listed capital and capital held by depositories in dematerialised form and the details of changes in share capital during the quarter.
Further, the exchange said the suspension will continue till such time these firms comply with the norms. The exchange said 15 days after suspension, 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.
“Revocation of suspension would be subject to the companies further complying with the procedure and all extant norms prescribed for revocation of suspension,” it added.