Shares of Jet Airways (India) would be shifted to the trade-for-trade segment from June 29 by the BSE and the National Stock Exchange. Under this category, delivery of shares is compulsory.

Shares of Jet Airways are currently available for trading in the futures and options segment of the exchanges. In compliance with the provisions of SEBI, the stock would be excluded from the F&O segment from June 28. Accordingly, no contracts would be available for trading in Jet Airways from June 28, said a statement from both the exchanges.

“Exchanges have been seeking clarification from the company in the recent past with respect to various rumours floating in the market. However, the company has failed to provide prompt responses and the responses received are not clear and satisfactory,” the release added. Further, with regard to declaration of financial results for the year ended March 31, 2019, the company has stated that it “is not in a position to consider and approve the audited financial result”.

Price discovery issue

Considering these reasons and the observations made by the auditor of the company, 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, the release further said, and added: “Hence trading in the scrip may not reflect the actual status of the company.”

As a preventive surveillance measure, it has been jointly decided by the exchanges that from June 28, till further notice, the security of the company should be shifted from the rolling segment to the trade-for-trade segment, wherein the settlement in the security will take place on gross basis with 100 per cent upfront margin and 5 per cent price band.

The stock of Jet Airways on Wednesday closed at ₹110.4, down 1.38 per cent, on the BSE.

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