Jet Airways Shares Crash 23% After NSE, BSE Impose Trading Restrictions
From the 52-week high of Rs 401 hit on 13 June 2018, the Jet Airways stock has plunged 77% considering its last closing price.
File photo of Jet Airways.
Shares of Jet Airways crashed as much as 23% in intraday trade on Thursday after the National Stock Exchange of India (NSE) said on Wednesday that the scrip will be removed from daily trading of futures and options (F&O) effective 28 June.
“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 28 June 2019,” a statement from both NSE and BSE read. According to a circular issued by NSE, the decision was taken as a part of preventive surveillance measures to curb excessive volatility in Jet Airways shares.
The stock exchanges notified that the shares of the airline will be shifted from “the Rolling Segment to Trade for Trade Segment, wherein the settlement in the scrip will take place on gross basis with 100% upfront margin and 5% price band.”
“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,” NSE said, adding that trading in the Jet Airways stock may not reflect the actual status of the company.
NSE also cited the airline’s failure to submit its financial results for the year ending 31 March as well as observations made by the auditors as reasons for the move.
Shares of Jet Airways, once the biggest private airline in India, have now more than halved since the airline shut down its operations in April after its lenders refused to bail it out.
From the 52-week high of Rs 401 hit on 13 June 2018, the Jet Airways stock has plunged 77% considering its last closing price. At 11:14 am, Jet Airways shares were trading at Rs 86.50 apiece, down 21.6%, on BSE.
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