Some of the companies claiming to be manufacturing and not shell companies are yet to get the suspension revoked
Close to two months after Securities and Exchange Board of India (Sebi) came out with its controversial order suspending daily trading in a long list of 331 alleged shell companies on August 7, restrictions on many of these companies have being revoked since then and such companies which include names like steel maker Adhunik Industries, liquor company Pincon Spirit, roads and bridge maker ARSS Infrastructure Projects, Lotus Eye Hospital and Institute, Edynamics Solutions and Cybermate Intotek, among others are now back in trade, a study by DNA Money shows.
This follows appeals filed before the Securities Appellate Tribunal (SAT) and, in some cases, satisfying Sebi officials through representations.
Some of the companies claiming to be manufacturing and not shell companies are yet to get the suspension revoked.
Such companies include names like Tatia Global Vennture, Quest Financial Services, Balgopal Commercial, Mather and Platt Fire Systems among others despite approaching SAT immediately after the August 7 order.
Regarding most of these cases, SAT has directed that their cases be disposed off within four weeks of its order.
Among the first to get reprieve was Pincon Spirit, headed by Monoranjan Roy who immediately appealed to SAT and was soon removed from the Graded Surveillance Measures (GSM) and trading was allowed in the scrip.
Under stage VI of GSM, trading in affected securities would be permitted only once a month, any upward price movement in these securities restricted and additional surveillance deposit of 200% of trade value would have to be collected from buyers .
Adhunik Industries, promoted by Kolkata-based Agarwal family having listed entity Adhunik Metaliks under its fold had approached SAT earlier for revocation of directive of the market regulator to National Stock Exchange and BSE on August 7 followed by immediate trading suspension by the bourses on the same day on entities traded on the bourses featuring in the regulator's communication.
The company hasn't been lucky the second time with rating agency India Ratings downgrading the steel maker to default grade due to delay in debt servicing in August following decline in financial flexibility.
"Timely debt servicing for at least three consecutive months could result in a positive rating action," the rating agency said earlier in September.
Adhunik group has common bankers and AIL's associate companies like the listed Adhunik Metaliks and others like Adhunik Alloys & Power and Zion Steel and Orissa Manganese & Minerals have all been referred to and accepted by National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 and hunt is currently on for new financial investors.
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- Tatia Global Vennture, among other companies are yet to get the suspension revoked
- Securities Appellate Tribunal has directed cases be disposed of within 4 weeks of order
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Such companies include names like Tatia Global Vennture, Quest Financial Services, Balgopal Commercial, Mather and Platt Fire Systems among others despite approaching SAT immediately after the August 7 order.
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