Stock exchanges will impose restrictions on trading in Jet Airways shares from June 28 as part of preventive surveillance measures to curb excessive volatility, according to a circular.
Cash-starved Jet Airways suspended operations in April and lenders are working on ways for a revival of the airline.
In a circular, NSE said shares of the company would be shifted from "Rolling Segment to Trade for Trade Segment, wherein the settlement in the scrip will take place on gross basis with 100 per cent upfront margin and 5 percent price band".
There are restrictions in trading of shares that are under Trade for Trade Segment.
The decision has been taken jointly by the exchanges and would be effective from 28 June, it said.
According to the circular, the company has failed to provide prompt responses to queries of exchanges regarding various rumours.
The responses received "are not clear and satisfactory", it added.
Also, the company is not in a position to consider and approve audited financial results for the year ended March 2019 and there are also observations made by the airline's auditor.
"... 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. Hence trading in the scrip may not reflect the actual status of the company," the circular said.
Shares of Jet Airways fell 2 percent to close at Rs 110.10 on the NSE Wednesday. It declined 1.38 percent to end at Rs 110.40 on the BSE.
Two operational creditors of Jet Airways— Shaman Wheels and Gaggar Enterprises — have moved the NCLT seeking bankruptcy proceedings against the airline. The tribunal issued notices to Jet Airways and banks which own the airline and posted the matter for further hearing on 13 Thursday when it will decide on admitting or rejecting the bankruptcy pleas.
Jet Airways owes more than Rs 8,000 crore to a consortium of banks led by the State Bank of India, which now run the airline, while it has a much larger debt pile by way of accumulated losses to the tune of Rs 13,000 crore and vendor dues of over Rs 10,000 crore and salary dues of over Rs 3,000 crore.
The banks have appointed SBI Capital Markets as the investment banker to find an investor to scout an investor for the company.
Bankers, after taking over the airline late March had invited bids on 8 April to sell up to 75 percent stake in the crippled carrier that formally stopped operations on 17 April.
With PTI inputs
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Updated Date: Jun 13, 2019 07:29:21 IST