Thursday, June 13, 2019

Jet Airways tanks 23% after BSE, NSE put trading restrictions w.e.f June 28

Mumbai: Shares of Jet Airways (India) slipped 23 per cent to Rs 84.8 apiece intra-day on Thursday to hit a fresh lifetime low on the BSE and National Stock Exchange (NSE). The fall comes on the back of the exchanges' decision to switch deals on the stock to ‘trade-to-trade’ segment with effect from June 28, 2019 till further notice. Under this category, delivery of shares is compulsory.

Trading of the stock in the futures and options (F&O) segment of the exchanges will be also removed.

"In compliance with the provisions of market regulator, Securities Exchange Board of India (SEBI), the airline's stock has been excluded from the Futures and Options segment... and no contracts shall be available for trading in the above mentioned security with effect from June 28, 2019," a statement from both the exchanges read.

It added that the scrip of the company shall be shifted from rolling segment to 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 exchanges reasoned that the company has failed to provide any prompt or satisfactory response to the clarifications that they have sought from the company with respect to various rumours floating in the market.

Furthermore, the debt-laden airline has also stated that it was not in a position to consider and approve the audited financial result for the year ended 31 March 2019.
13/06/19 Business Standard
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