Leading bourses BSE and NSE have taken action against Vijay Mallya -led UB group firms Kingfisher Airlines and UB Engineering for non-compliance to timely reporting of financial results for two consecutive quarters.
The exchanges will shift these companies to restricted trade category or 'Z' segment from September 24.
Under 'Z' segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.
In a similar-worded circulars, the exchanges have said that these "scrips (Kingfisher Airlines and UB Engineering) will be transferred to 'Z' group with effect from Wednesday, September 24, 2014, due to non-compliance for two consecutive quarters i.e March 2014 and June 2014 for the Clause-41 of the Listing Agreement."
Clause-41 of the Listing Agreement deals with non-compliance to timely reporting of financial results.
Apart from Kingfisher Airlines and UB Engineering, BSE will shift another 25 companies including Arihants Securities, Birla Pacific Medspa, Pretto Leather Industries and Best & Crompton Engineering to the restricted trade category.
The National Stock Exchange has also announced similar action against another four companies California Software Company, Surya Pharmaceutical, Goenka Diamond & Jewels and Varun Industries. These companies are also part of the BSE list.
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