BSE to suspend share trading of non-compliant companies from Nov 16

New Delhi: Leading stock exchange BSE will suspend three companies from next month for non-compliance with listing agreement clauses relating to corporate governance norms and shareholding disclosures.

The companies, Terruzzi Fercalx India Ltd, Alka Diamond Industries Ltd and Meuse Kara & Sungrace Mafatlal Ltd, have been given time till November 10 to comply, or be suspended.

While trading suspension will begin from November 16, the exchange also ordered freezing of the entire promoter shareholding of these companies from October 23 till further notice.

"Trading in securities of these companies will be suspended with effect from November 16, on account of non- compliance with Clauses 35 and or 49 of the Listing Agreement for two consecutive quarters -- March and June," BSE said in a circular.

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 November 10 2015, the trading in their securities "will not be suspended".

Otherwise, the suspension will continue till such time the companies comply including payment of fines.

The revocation of suspension would be subject to the companies further complying with the procedure and all extant norms prescribed for revocation of suspension.

According to 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.