Leading stock exchange BSE has said trading in Inter Globe Finance shares will resume from tomorrow after the Securities Appellate Tribunal (SAT) stayed curbs imposed on the company. The shares of the company will be moved out of GSM (graded surveillance measures) framework and will be available for trading with effect from August 21, the exchange said in a circular. It will be allowed to trade in a price band of five percent.
The move comes after the SAT, last week, stayed trading restrictions imposed on the company which figured in a list of 331 “suspected shell companies” referred by the government to Sebi. In addition, the tribunal lifted the trading curbs imposed on Sanco Industries, which is listed on the NSE. So far, the tribunal has stayed trading restrictions imposed on a total of 10 companies, including JK Infra projectsand Parsvnath Developers. The appellants had submitted their respective financials,along with other filings, before SAT to establish that they are not shell companies and are in compliance with all regulations.
Sebi, on August 7, had asked stock exchanges to restrict trading in 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 per cent of trade value to be deposited by the buyers. Sebi had received the list of such companies from the corporate affairs ministry and many of the 331 firms are under the scanner of Serious Fraud Investigation Office (SFIO)and the income tax department