Kingfisher, UB Engg shares plunge 5% as bourses decide to suspend trading

Shares of Kingfisher Airlines and UB Engineering fell as much as five per cent on Monday after top bourses - Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) - announced suspension of trading in the shares of these firms from December.

Kingfisher's shares plunged 4.64 per cent to its lowest trading permissible limit for the day at Rs 1.85 on the BSE.

Shares of UB Engineering also fell by 4.96 per cent to hit its lower circuit limit of Rs 7.67. Selling was also seen in other UB Group stocks, where UBHL was trading lower by 3.24 per cent, followed by McDowell Holdings (down 2.74 per cent) and United Breweries (down 0.44 per cent).

In a major clampdown over non-compliance of Listing Agreement the two top bourses (BSE and NSE), in separate circulars, had said that trading would be suspended in securities of Kingfisher and UB Engineering - both parts of crisis-hit UB Group headed by Vijay Mallya - with effect from December 1.

Besides, the entire promoter shareholding of these companies were frozen with effect from Friday itself.

The action follows non-compliance to a Listing Agreement clause relating to timely preparation and disclosure of financial results by a listed company for two consecutive quarters. The results are required to be disclosed by listed companies on stock exchange platform for benefit of investors.