The Sebi's trading restriction order has taken its toll on the stocks of JKumar Infraprojects and Prakash Industries. The two companies were in the list of 167 firms in which market regulator Sebi asked the bourses to restrict trading on August 7.
The two firms approached the Securites and Appellte Tribunal against the Sebi order.
Sebi asked stock exchanges to restrict trading in shares of 331 "suspected shell companies" , some of which have investments by several well-known domestic and foreign investors.
Subsequently, the exchanges had moved such stocks to the highest sixth grade of GSM, where the shares are allowed to trade only on first Monday of the month with no upward movement in price with Additional Surveillance Deposit of 200 per cent of trade value to be deposited by the buyers
On Thursday, SAT stayed trading restrictions imposed on JKumar Infraprojects and Prakash Industries, which were among the 331 suspected shell companies identified by the government.
Shares of these companies have been moved out of GSM (Graded Surveillance Measures) framework. The two stocks were allowed to trade in a price band of 20 per cent. In its order, the tribunal said it is apparent that Sebi passed the impugned order without any investigation.
At 11:37 am, the JKumar Infraprojects and Prakash Industries stocks were stuck in the lower trading band, down 20 percent.
The JKumar Infraprojects stock was down 56.70 points at 226 level on the BSE.
The Prakash Industries stock was trading 27.80 points lower at 111.2 level on the BSE.