Thursday, March 29, 2012

Cals Refineries to be Suspended by BSE

Cals Refineries Ltd (BSE: 526652) has been marked for suspension from trading by Bombay Stock Exchange with effect from April 20th 2012.

The suspension is for non-compliance of certain provisions of the BSE’s Listing Agreement with companies. These include timely publication of reports like Share Holding Patterns (SHPs), Quarterly Financial Results, Project Progress Reports etc, as well as timely payment of listing fees.

It is not clear which provisions were specifically violated by Cals Refineries to get this suspension.  The order against Cals is part of a wider suspension order against 49 companies that will be suspended.

StockExplain had queried the company management on what could be the possible violations, and they have replied that, "The company is complying with the listing agreements." It is not clear whether it is already complying and thus contesting BSE's action, or undertaking a process of compliance now after the suspension order came.

The suspension is for an indefinite period, that is, till the companies comply with the provisions of the Listing Agreement as well as the extant norms for revocation as prescribed by the Exchange.

Though the violations being addressed now by BSE are only up to June 2011, for the suspension to be revoked later, companies like Cals will have to comply with the provisions till the latest quarter.

BSE is offering these companies one more chance to comply, by which if they fulfill the listing agreement provisions by April 13th, these scrips will be suspended only for 5 trading days from 20th, that is, till 26th April.

On queried by StockExplain whether the company would be trying to meet the deadline on 13th, the management has replied that, "We have already taken up the matter with BSE to resolve it." 

Cals Refineries was already in deep trouble after SEBI detected manipulative trading in its GDR converted shares and imposed a ban on equity expansion. It is awaiting the final order from SEBI.

Editor's Note: This news story was updated on 30th March 2012 at 09:20 AM to include the management's replies.

1 comment:

  1. Seems like Cals escaped suspension this time. They are still trading as of 20th of April, as against others like temp foods etc which we marked for suspention. Any News, whats happening?