Shares of J Kumar Infraprojects and Prakash Industries on Friday were locked in the 20 percent lower circuit as trading resumed in the stocks after SAT stayed the restrictions imposed on them. The sharp fall was because of the selling pressure from worried investors.
J Kumar Infra was at Rs 227.35 and Prakash Industries at Rs 111.45.
Both the companies were part of the list of the 331 suspected shell companies forwarded by Sebi to BSE and NSE earlier this week. The stocks in the list were placed under GSM (Graded Surveillance Measures) framework stage VI by the exchanges.
On Thursday, the exchanges said in a circular the these stocks will be made available for trading with effect from 11 August (Friday) after the Securities Appellate Tribunal lifted the restrictions.The bourses had said both the stocks would be allowed to trade in a price band of 20 percent.
Sebi, on 7 August, asked stock exchanges to restrict trading in the shares of 331 "suspected shell companies", some of which have investments by several well-known domestic and foreign investors.
Subsequently, the exchanges had moved such stocks to the highest sixth grade of GSM, where the shares are allowed to trade only on first Monday of the month with no upward movement in price with Additional Surveillance Deposit of 200 percent of trade value to be deposited by the buyers.
The move came after the watchdog received the list of such companies from the corporate affairs ministry and many of the 331 firms are under the scanner of the Serious Fraud Investigation Office (SFIO) and the Income Tax Department.
J Kumar Infraprojects, Prakash Industries, Parsvnath Developers and Kavit Industries moved the SAT against the Sebi directions.
The SAT on Friday asked the stock exchanges to lift the trading restrictions on shares of Parsvnath and Kavit too.
The companies submitted various financials along with their filings before SAT to establish that they are not shell companies and are in compliance with all regulations.
Updated Date: Aug 11, 2017 15:26 PM