Trading has been suspended by BSE in shares of as many as 16 companies. The NSE has announced similar action against four companies, three of which are also part of the BSE list.
While trading suspension would begin from August 26, the exchanges also ordered freezing of the entire promoter shareholding of these companies with immediate effect till further notice.
Capital markets regulator Sebi asked the stock exchanges, last year, to put in place Standard Operating Procedure (SOP) for suspension and revocation of equity shares of listed entities for non-compliance of certain clauses of the Listing Agreement.
In case any of these companies comply, to the satisfaction of the exchange, with all the provisions of the Listing Agreement including payment of fines on or before August 20, 2014, the trading in their securities will not be suspended, the bourses said.
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However, in case these companies fail to comply with the provisions of the Listing Agreement, to the satisfaction of the Exchange on or before August 20, 2014, the suspension will continue till such time the company complies including payment of fine.
According to separate circulars issued by NSE and BSE, 15 days after suspension has been effected, trading in the shares of non-compliant companies would be allowed on restricted basis or in 'Trade for Trade basis in Z group' only on the first trading day of every week for six months.
The four companies whose share trading has been suspended by NSE are Asian Electronics, Birla Power Solutions, KDL Biotech and Kitply Industries.
The companies on the BSE's suspension list include Anu's Laboratories, Asian Electronics, Birla Power Solutions, CCS Infotech, Dhanus Technologies, Excell Glasses, Hanjer Fibres, In House Productions, Indo Bonito Multinational, KDL Biotech, Krishna Ferro Products, Rishab Financial Services, Rockland Thermionics, S Forgings & Engineering, Fact Enterprise and Texplast Industries.