Mumbai: Shares of grounded airline Jet Airways will be removed from daily trading of futures and options at the National Stock Exchange (NSE) from effective June 28.
The reason cited by the bourse is the company`s failure to respond to queries about persisting rumours in the market, NSE said in a circular late on Wednesday.
NSE also cited the company`s failure to submit financial results for the year ended March 31 as well as observations made by its auditor as reasons for its decision."The exchange has been seeking clarification from the company in the recent past about various rumours floating in the market, but Jet has failed to provide prompt responses. The responses have also not been clear and satisfactory," the circular said.
There are concerns with regard to continuity of flow of information about the company which is very vital for the appropriate price discovery in the scrip, NSE said."Hence, trading in the scrip may not reflect the actual status of the company. Accordingly, no contracts will be available for trading from June 28 ... as a preventive surveillance measure," it said.
Jet Airways stopped operations on April 17 and has been under the management control of State Bank of India-led consortium of lenders following a debt-restructuring plan. But no firm bids have come forth yet to revive the airline.
Most of its board members and senior executives, including Chief Executive Officer Vinay Dube and Chief Financial Officer Amit Agarwal, have resigned from their positions.
The airline went into a tailspin while facing bruising competition from low-cost airlines, fluctuating crude prices and a weak rupee.