Jet Airways' Stocks Plunge 16% With Surveillance Measures Set to Kick in

Daniel Fowler
June 15, 2019

Jet Airways had also said recently that it was not in a position to approve the audited results for the year ended March 31, 2019.

According to a stock exchange filing, Jet's securities will now be moved to the trade for trade segment with effect from June 28 as a "preventive surveillance measure", from the current rolling segment, which allows daily trading.

Shares of debt-ridden airline Jet Airways tanked on Thursday morning after the BSE and the National Stock Exchange made a decision to pull the carrier out of daily trading and shift it to the trade-for-trade segment from June 28.

This means that a buyer of the stock can only sell shares purchased two days after the purchase date, and no longer trade those shares intraday, reducing speculation in the stock.

On the NSE, shares plummeted 23.30 per cent to hit a multi-year low of ₹84.60.

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On the NSE, the shares fell 17.72 per cent to close at Rs 90.75. By the end of the day, it's stock closed 16.71 per cent lower that previous day closing at Rs 91.95 a piece. Over 3.35 crore shares changed hands on the two bourses.

The company's market valuation declined by Rs 150.28 crore to Rs 1,271.72 crore on the BSE. It has, therefore, refrained from admitting their plea for bankruptcy proceedings against Jet filed on June 10.

Jet Airways owes more than Rs 8,000 crore to a consortium of banks led by the State Bank of India, which now run the airline, while it has a much larger debt pile by way of accumulated losses to the tune of Rs 13,000 crore and vendor dues of over Rs 10,000 crore and salary dues of over Rs 3,000 crore.

According to sources, Hinduja Group and Etihad Airways have aired concerns regarding the investigation into alleged irregularities at the airline, when they met Jet Airways officials and SBI on June 12.

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