SAT to hear Parsvnath, Kavit Industries pleas tomorrow
Trading restrictions were imposed on these companies with effect from August 8 after which many of them approached SAT.
New Delhi: The Securities Appellate Tribunal (SAT) will on Friday hear pleas by Parsvnath Developers and Kavit Industries against trading restrictions imposed on their shares by exchanges on markets regulator Sebi's directions.
The tribunal on Thursday stayed trading restrictions imposed on JKumar Infraprojects and Prakash Industries, which were also on a list of 331 "suspected shell companies" referred by the government to Sebi.
Trading restrictions were imposed on these companies with effect from August 8 after which many of them approached SAT.
While Parsvnath Developers had also filed its appeal on Wednesday, the tribunal has listed it for hearing on Friday. Kavit Industries' plea is also listed for Friday, as per the cause list of the SAT.
Hearing began on pleas by JKumar Infraprojects and Prakash Industries on Wednesday and SAT on Thursday stayed the trading restrictions imposed them. These shares can resume normal trading from Friday.
Kavit Industries, a Gujarat-based firm, is manufacturer and supplier of edible oil, and Parsvnath Developers is a Delhi-based real estate company.
The Gujarat-based firm on Thursday posted a net profit of Rs 31 lakh for the three months ended June 30, higher than Rs 7.4 lakh reported in the year-ago period. Besides, the company's revenue rose to Rs 30 crore in the period under review from Rs 2.59 crore in the April-June period of 2016-17.
Markets regulator Sebi, on Monday, had asked the 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.
The move came after the watchdog received the list of such companies from the corporate affairs ministry and many of the 331 firms are under the scanner of the Serious Fraud Investigation Office (SFIO) and the Income Tax Department.
On August 8, many of the companies tagged annual reports and other financial along with their filings to press upon the exchanges that they are not shell companies and are in compliance with all regulations.
Out of the 331 companies on the list, more than 160 are actively traded shares on the exchanges.