Shares of Parsvnath Developers, Pincon Spirit, Signet Industries and three others plunged up to 20 per cent after trading resumed at their counters today after the Securities Appellate Tribunal stayed the curbs imposed on these companies. Shares of Parsvnath Developers tumbled 9.81 per cent to Rs 21.15 — its lower circuit limit — on the BSE. Shares of Pincon Spirit slumped 19.96 per cent to hit its lowest trading permissible limit for the day at Rs 57.35. Signet Industries plummeted 19.96 per cent to Rs 8.94 — its lower circuit limit. SQS India BFSI plunged 15.86 per cent to Rs 422, its 52-week low. Besides, shares of two companies — Kavit Industries and Kkalpana Industries (India) Ltd —— listed only on the BSE also tanked 4.90 per cent to hit its lowest trading permissible limit for the day at Rs 36.80 and 19.92 per cent to Rs 30.35 (lower circuit), respectively. Both the NSE and BSE had on Friday said trading will resume in the shares of Parsvnath Developers and three others from Monday after the SAT stayed curbs imposed on these companies. Besides, shares of Kavit Industries and Kkalpana Industries will also start trading, BSE had said. The shares of these companies will be moved out of GSM (graded surveillance measures) framework and will be available for trading with effect from August 14, the exchanges had said in similarly-worded circulars. The move came after the Securities Appellate Tribunal (SAT) on Friday stayed the trading restrictions imposed on these companies, which figured in a list of 331 “suspected shell companies” referred by the government to SEBI.
Investment in Indian developers Parsvnath Developers , Pincon Spirit , Signet and others have dropped by up to 50 % after a crackdown on shell companies . The Indian Appellate Tribunal recently upheld trading restrictions on the companies , which featured on a list of 331 " illegal shell companies " referred by the Indian government to the Securities and Exchange Board of India .