Stock exchanges to impose trading restrictions on Jet Airways shares

Stock exchanges will impose restrictions on trading in Jet Airways shares from June 28 as part of preventive surveillance measures to curb excessive volatility, according to a circular.

Cash-starved Jet Airways suspended operations in April and lenders are working on ways for revival of the airline.

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".

There are restrictions in trading of shares that are under Trade for Trade Segment.

The decision has been taken jointly by the exchanges and would be effective from June 28, it said.

According to the circular, the company has failed to provide prompt responses to queries of exchanges regarding various rumours.

The responses received "are not clear and satisfactory", it added.

Also, the company is not in a position to consider and approve audited financial results for the year ended March 2019 and there are also observations made by the airline's auditor.

"... 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," the circular said.

Shares of Jet Airways fell 2 per cent to close at Rs 110.10 on the NSE Wednesday. It declined 1.38 per cent to end at Rs 110.40 on the BSE.