The stock exchange suspends the trading of the stocks of the companies if the companies do not follow the regulation for violating the rules. When trading is suspended, the buying and selling of the company’s shares stops on the stock exchange. The suspension of trading affects the value of the company’s stocks, but it does not mean that investors lose all their money.
It only means that the shares of that company will no longer be traded on the stock exchange. If the companies start complying with the regulation again, then the suspension on trading ends and the company’s stocks again start trading on the exchange. BSE and NSE have stopped trading of DHFL stocks from today. Know about those giant companies whose trading of stocks has been suspended before.
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have stopped trading in the bankrupt Dewan Housing Finance Company (DHFL) stocks on their platforms from today. Discontinuation of trading of the company’s shares by BSE and NSE will lead to loss of money of lakhs of equity shareholders who had retained their investments in DHFL till now.
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BSE and NSE said in their circulars that DHFL informed the stock exchanges on June 8 that NCLT Mumbai has approved its resolution plan, which will delist the equity of the company from the stock market. Piramal Group has won the bid to acquire DHFL.
As per the resolution plan, the value of equity shares of DHFL will become zero after the acquisition. That is, the equity shareholders of the company will not get anything. Trading of DHFL’s stocks in the stock market has been done till June 11 i.e. Friday. On Friday, the company’s shares closed down 10% at Rs 16.70.
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Lakshmi Vilas Bank
Lakshmi Vilas Bank was acquired by DBS Bank in November 2020. After this Lakshmi Vilas Bank merged with DBS Bank. Due to this the trading of its stocks on BSE and NSE stopped from 27 November 2020.
Uttam Value Steels
The shares of Uttam Value Steels got delisted on BSE and NSE on 20 November 2020, after which the trading of the company’s stocks was stopped on the stock exchange. According to the resolution plan of the consortium led by US head fund CarVal, all equity shares of the company, the value of paid-up capital became zero and the company’s stocks were suspended without any payout. The company had 54% public shareholding as of June 2020.
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The BSE had suspended trading of Binani Industries’ stocks with effect from November 4, 2019, due to violation of listing norms and discrepancies in the release of its quarterly results. The company had neither released the March and June 2019 quarterly results nor filed the fine. Because of this trading of the company’s stocks was stopped.
BSE had suspended trading of Manpasand Beverages stocks with effect from November 4, 2019, due to violation of listing norms and non-release of its quarterly results. The company had not released the results for the March and June 2019 quarters and had not filed the fine. Due to this the trading of the company’s stocks was stopped.
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In the PNB scam, trading in the stocks of Gitanjali Gems, the company of fugitive diamond trader Mehul Choksi, was stopped on 10 September 2018. The company had violated the listing norms and had not released its December 2017 and March 2018 quarterly results.
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