BSE to suspend trading in 16 cos for regulatory reasons

The Bombay Stock Exchange (BSE) today said that it has decided to suspend trading in securities of Pyramid Saimira Theatre and 15 other companies for various regulatory reasons, including non-compliance with the listing rules.

Out of the 16 companies, trading in securities of 12 companies will be suspended with effect from February 24, 2011 on account of non-compliance with the provisions of the listing agreement, the BSE said in a statement here.

The 12 companies, which have failed to comply with various provisions of the Listing Agreement up to quarter ended September, 2010 include - Bellary Steels & Alloys, Incap Financial Services, Indage Vintners, India Sugars & Refineries, Jalpac India, Mascon Global, MTZ Polyfilms.

Other companies are Platinum Corporation, Alcobex Metals, Integrated Finance Company and Intergrated Digital Info Services.

As per the provision of Securities Contracts Rules, 1957 and the Rules, Bye-laws and Regulations of the Exchange, a company listed on the BSE is required to comply with various clauses of the Listing Agreement, failing which trading in securities of such defaulting companies is liable for suspension.

The BSE clarified that if the company complies with all the provisions of the Listing Agreement on or before February 14 trading in securities of the company will be suspended for five trading days up to March 5.

In case a company complies with all the provisions of the Listing Agreement on or before March 11, the trading in securities of a company will be suspended for 30 days up to March 25.

However, in case the company fails to comply with the provisions of the Listing Agreement, to the satisfaction of the Exchange on or before March, the suspension will continue till such time the company complies with the procedure prescribed for revoking suspension in a scrip, the BSE said.

Besides, the BSE also said that four companies such as Baffin Engineering Projects, Navkar Builders, Valley Indiana Leisure and Vardhaman Laboratories  have failed to comply with various provisions of the listing agreement within the specified time limits, till quarter ended September 2010.

Thus, trading in the securities of these companies will be suspended for five trading days from February 3 to February 9 on account of late compliance.