Shares of debt-ridden airline Jet Airways tanked on Thursday morning after the BSE and the National Stock Exchange decided to pull the carrier out of daily trading and shift it to the trade-for-trade segment from June 28. The airline’s shares fell over 22% to Rs 85.75 on the BSE in early morning trade.
Shares of Jet Airways are currently available for trading in the futures and options segment. However, in the trade-for-trade segment, the delivery of shares will be compulsory, and there will be no intra-day trading.
“Exchanges have been seeking clarification from the company in the recent past with respect to various rumours floating in the market,” the BSE and National Stock Exchange said in a statement on Wednesday, according to The Hindu. “However, the company has failed to provide prompt responses and the responses received are not clear and satisfactory.” The exchanges also added that the company had said it is not in a position to approve the audited financial results for the 2018-’19 academic year.
“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,” the statement said, according to Reuters. It added that trading in the stock may not reflect the actual financial position of the company.
Jet Airways has grounded all its national and international flight operations since April 17. The airline’s lenders, led by the State Bank of India, have declined to provide it with emergency funds. Etihad Airways and a few other parties have offered to acquire stake in the debt-ridden carrier.
A group of employees of the struggling airline met newly appointed Civil Aviation Minister Hardeep Singh Puri and Finance Minister Nirmala Sitharaman in New Delhi on June 3. They handed Puri a memorandum.