ALSO READSAT to hear Parsvnath, Kavit Industries pleas tomorrow Trading in JKumar Infra, Prakash Industries to resume tomorrow SAT to hear Parsvnath, Kavit Industries pleas tomorrow (Eds: Updating with fresh quotes) Shell cos: SAT asks Sebi to probe cases, lifts trading curbs on 6 Parsvnath, JKumar move SAT against shell company tag
Leading stock NSE today said trading in four companies, including Parsvnath Developers and SQS India BFSI Ltd, will resume on Monday after SAT stayed trading restriction imposed by Sebi on these companies. Other two companies are Signet Industries Ltd and Pincon Spirit Ltd. Shares of these four companies would be moved out of GSM (Graded Surveillance Measures) framework and made available for trading with effect from August 14, NSE said in a circular. Parsvnath would be allowed to trade in a price band of 10 per cent, while the same for other three would be 20 per cent. The move comes after the Securities Appellate Tribunal (SAT) today stayed trading restrictions imposed on these four companies, which figured in a list of 331 "suspected shell companies" referred by the government to Sebi. The appellants had submitted their respective financials, along with other filings, before SAT to establish that they are not shell companies and are in compliance with all regulations. Besides, trading in JKumar Infraprojects and Prakash Industries resumed today after SAT, yesterday, lifted trading restriction imposed on them as per a Sebi directive. Sebi, on August 7, had 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. Sebi had 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.
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