Sunday, 21 July, 2019

Jet Airways shares extend losses, plunge 23% as NSE readies trading restrictions

Corrected: Jet Airways to be removed from trading in NSE's futures and options market Jet Airways stock plunges
Ginger Lawrence | 15 June, 2019, 16:16

Moreover, the company has said it was not in a position to consider and approve the financial results for the year ended March 31, 2019.

The National Stock Exchange of India (NSE) said on Wednesday contracts of Jet Airways Ltd would be pulled out of trading in the Futures and Options segment, citing the embattled carrier's failure to respond to queries about rumours in the market.

Shares of Jet Airways Thursday cracked almost 18 per cent after stock exchanges made a decision to impose restrictions on its stock trading from June 28.

In the trade-to-trade category, investors have to take compulsory delivery and no intra-day trading is permitted.

On the BSE, the airline's scrip plunged 10.58 per cent or Rs 13.25 to Rs 111.95 on Tuesday.

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In terms of traded volume, 35.05 lakh shares were traded on the BSE and over three crore shares changed hands on the NSE during the day.

Additionally, the stocks were impacted by reports that Jet's vendors approached the National Company Law Tribunal (NCLT) on Monday.

By asking the two operational creditors-Shaman Wheels and Gaggar Enterprises-who have taken Jet Airways to NCLT, to again serve legal notices to the grounded airline, the tribunal is yet to admit the bankruptcy pleas.

Jet Airways, the country's second-largest carrier past year, had to halt operations in April as losses were mounting and the airline failed to get emergency funding that would have helped it run day-to-day operations.

Jet's domestic lenders headed by State Bank of India (SBI) were contemplating to release the planes by paying the outstanding dues to the US Exim Bank after the aircraft were repossessed in April.