Shares of grounded carrier Jet Airways continue to spiral down, hitting a new low on Thursday after the National Stock Exchange and the BSE said that the stock would be removed from daily trading of futures and options and moved to trade for trade segment from June 28.
The stock was trading 15 per cent lower at Rs 93.85 on the BSE in morning trade. The share price has crashed 60 per cent since Jet Airways announced temporary suspension of operations on April 17.
"Exchanges have been seeking clarification from the company in the recent past with respect to various rumours floating in the market. However, the company has failed to provide prompt responses and the responses received are not clear and satisfactory," BSE said in its statement on the issue.
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.
"There are concerns with regard to continuity of flow of information about the company, which is very vital for the appropriate price discovery in the scrip. Hence, trading in the scrip may not reflect the actual status of the company," the exchange said.
What the decision of the stock exchanges to remove Jet Airways from daily trading means is that from June 28, till further notice, shares of the company will be excluded from futures and options trading. There can't be intra-day trading and delivery of shares is mandatory in each trade.
The settlement in the security will take place on gross basis with 100 per cent upfront margin and 5 per cent price band.
Jet Airways, the country's second-largest carrier last 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.
A consortium of lenders, led by the State Bank of India, has been searching for a buyer, which would acquire Jet Airways. So far, only Etihad, the Abu Dhabi-based airline, which holds 24 per cent stake in Jet Airways, has said it is ready to pump in more money, but only for a minority stake.
Etihad has been clear since the lenders called for bids that the majority of the funds Jet Airways needs must come from other partners.
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The Hinduja Group had recently shown interest in investing in Jet Airways, while AdiGro Aviation, part of the London-based AdiGroup, has also evinced interest in picking up a stake. However, it too will require an operational partner to revive and run Jet Airways.
Last month, the top management of Jet Airways, including CEO Vinay Dube, quit. Several of the Boeing 737 aircraft of Jet Airways, which were leased, have been de-registered by the Directorate General of Civil Aviation at the request of lessors not paid for months. Rival SpiceJet, which also has a fleet of Boeing 737 planes, has leased some of them, while also hiring people from Jet Airways.
Earlier this week, two operational creditors of Jet Airways filed insolvency pleas in the National Company Law Tribunal for recovery of their dues.
