Kingfisher Airlines, UB Engineering face trading suspension from Dec 1

Shares of the grounded Kingfisher Airlines have been a penny stock for a long time now. The stock exchanges have now put them out their misery with the Bombay Stock Exchange and the National Stock Exchange of India Ltd., India’s two main stock exchanges, to suspend trading of shares of from December 1 for failing to comply with rules on reporting financial results, the bourses said in separate notices.

Kingfisher, founded by liqour baron Vijay Mallya and once India’s No.2 carrier, has not flown for more than two years for want of cash. The company last reported its financial results for the three months ended December 2013.

The exchanges will also suspend trading of UB Engineering Ltd, part of Mallya’s UB Group, from Dec. 1, they said citing the company’s failure to report financial results for two consecutive quarters to end-June.

Several other smaller companies are also facing trading suspension for the same reason, according to stock exchange notices.

The companies can avert trading suspensions if they comply with the financial results reporting rules and pay required fines by November 25, the exchanges said on Friday, adding the founder holding in the companies had been freezed, effective November 7.

Reuters