ALSO READSAT stays trading restrictions on JKumar, Prakash Industries (Eds: Adding fresh details) BSE, NSE to keep nine cos under enhanced surveillance Sebi asks bourses to act against 331 suspected shell companies Sebi eases restrictions on 19 persons Big names figure among shell firm list; Companies deny tag
Leading stock exchanges BSE and NSE today said trading in JKumar Infraprojects and Prakash Industries will resume tomorrow after SAT stayed trading restriction imposed on them, according to a Sebi directive. Shares of these companies would be moved out of GSM (Graded Surveillance Measures) framework and made available for trading with effect from August 11, BSE and NSE said in similar circulars. The two stocks would be allowed to trade in a price band of 20 per cent. The move comes after the Securities Appellate Tribunal (SAT) today stayed trading restrictions imposed on these companies, which figured a list of 331 "suspected shell companies" referred by the government to Sebi. Sebi, on August 7, 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 per cent of trade value to be deposited by the buyers. The move came after the watchdog 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. JKumar Infraprojects and Prakash Industries had moved the SAT against the Sebi directions. Following their appeals, the SAT has stayed the trading restrictions imposed on the two companies and these shares can resume normal trading tomorrow. Besides, the tribunal will tomorrow hear pleas by Parsvnath Developers and Kavit Industries against trading restrictions imposed on their shares by exchanges on markets regulator Sebi's directions.
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