NEW DELHI: Shares of grounded airline Jet Airways fell more than 16 per cent intraday on June 13 after stock exchanges decided to impose trading restrictions on the airline effective from June 28 to curb speculative trading in the troubled company
In the early trading hours, Jet’s share price slumped over 23 per cent to 84.80 level compared to the previous close of 110.40 on BSE. By the end of the day, it’s stock closed 16.71 per cent lower that previous day closing at Rs 91.95 a piece. The stock had fallen as much as 65 per cent since the airline shut down its operations in April after failing to secure funds from its lenders.
According to a circular issued by NSE, the decision was taken as a part of preventive surveillance measures to curb excessive volatility.
The stock exchange notified that the shares of the airline will be shifted from “Rolling Segment to Trade for Trade Segment, wherein the settlement in the scrip will take place on gross basis with 100 percent upfront margin and five per cent price band”. This means that a buyer of the stock can only sell shares purchased two days after the purchase date, and no longer trade those shares intraday, reducing speculation in the stock. The move also means that circuit breakers will soon apply on the stock.
Meanwhile, National Company Law Tribunal on Thursday adjourned the insolvency plea against Jet Airways to 20 June as the airline needed more time to respond to notices for recovery of dues. With liabilities of nearly Rs 15,000 crore, Jet is yet to find a buyer.