BSE to suspend trading in 31 companies effective March 31

On March 4, BSE said it noticed 'substantial increase in manipulation/abrupt movement in prices of securities wherein common modus operandi is through route of preferential allotment'

Continuing with its efforts to curb manipulative activities on its platform, the Bombay Stock Exchange Monday decided to suspend trading in shares of as many as 31 companies from Thursday.

The move came less than a month after the exchange had cautioned about substantial increase in manipulation/abrupt movement in the prices of securities wherein common modus operandi was found to be through preferential allotment route.

Among the firms facing suspension include Autopal Industries, Diligent Industries, Frontline Business Solutions, Global Infratech & Finance, Hindustan Wires, Ram Minerals and Chemicals, Unno Industries and Zyden Gentec.

BSE, in a circular, informed members that trading in securities of these "companies shall be suspended with effect from Thursday March 31, 2016."

In recent times, markets regulator Sebi as well as the exchanges have been taking strict action against entities indulging in manipulative practices in the capital markets.

On March 4, BSE said it had noticed "substantial increase in manipulation/abrupt movement in the prices of securities wherein common modus operandi is through the route of preferential allotment."

"While the exchange, from time to time, has taken requisite steps to detect and contain such instances, it is felt necessary that further pre-emptive measures should be adopted to curtail misuse of the exchange's system," it had added.

These steps include various enhanced surveillance measures like reduction in price band and suspension in the trading of securities.