BSE suspends 2 cos, shifts 25 to Z group

Prakash Fotran Softech Ltd has violated certain provisions of the listing agreement. The exchange also observed that the price in the scrip has increased in a short span of time. The scrip had shot up from Rs 3 to Rs 47 before reacting to Rs 24.55. “This is one company which took advantage of the software boom using its name. Investors should think twice before investing in such companies,” said a fund manager.

Meanwhile, the BSE has shifted the equity shares of 25 companies to a groupcalled `Z group’. These companies have not complied with and are in breach of several provisions of the listing agreement, according to the BSE.

The companies are: APT Yarns, AS Rototech, Ahmedabad Advance Mills, Ajanta Tubes, Alfa Export, Ambuja Electocastings, Ambuja Zinc, Amigo Export, Amrut Credit, Amrut Industries, Anik Steels, Anmol Drugs, Anugraha Wood, Arihant Thermoware, Armaan Electric, Arvind Rashayana Udyog, Associated Ceramics, Atash Industries, B L Industries (India), Bell Remedies, Betalact Laboratories, Bhuvan Tripura Industries, Bluechip Stockspin, Carbon Composites (India) and Charminar Steels.

Some of these companies have stopped operations. “Many of them have not redressed investor complaints. Besides, they are rarely traded on the stock exchange. There are some cases where companies have not finalised financial accounts,” said a market source. The BSE created the Z category to put all such erring companies under one umbrella.

Govt to sue 142 vanished cos
NEW DELHI: TheCentre has launched prosecution against 142 companies all over the country for closing down their business without fulfilling the legal requirements, an official statement said here today.

"Prosecution has been launched against 67 companies for non-filing of documents required under the Companies Act and notices have been issued to 36 of them," the statement said. It said records relating to 23 vanishing companies were not even available with the offices of registrars in different states and the matter was being investigated by the police.

Eight of such companies were under liquidation and assets of the two of them in Punjab and one in Karnataka had been taken over by the state governments, it said adding that proceeding against one of the companies was pending before the Bureau for Industrial Finance for Reconstruction. The prosecution was launched against these companies after the recommendation by the SEBI , it said. The Department of Companies Affairs had set up seven task forces with members includedfrom SEBI and different stock exchanges all over the country to deal with the cases of vanishing companies, the statement said.