Leading stock exchange BSE will suspend trading in the securities of eight companies from February 11 as they failed to comply with certain listing regulations for two straight quarters.
In case these firms comply with the norms by February 5, they would not face trading suspension.
The companies that will face suspension are CTIL Ltd, Digital Electronics, DMC Education, Finaventure Capital, Hind Industries, Vishal Malleables, Weizmann Fincorp and Roselabs.
Besides, the exchange has ordered freezing of the entire promoter shareholding of these companies from today till further notice.
"Trading in securities of these (eight) companies will be suspended with effect from February 11 on account of non- compliance with Clauses 35 and/or 49 of the then Listing Agreement for two consecutive quarter i.E, June 2015 and September 2015," BSE said in a circular today.
The clause 35 of the Listing Rules pertain to disclosure about shareholding pattern, while clause 49 relates to Corporate Governance norms.
Further, the exchange said the suspension will continue till such time these firms comply with the norms including payment of fines.
The exchange said that 15 days after suspension, 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.
"Revocation of suspension would be subject to the companies further complying with the procedure and all extant norms prescribed for revocation of suspension," BSE noted.
