UB Firms In Restricted Trade Segment

Leading exchanges BSE and NSE have taken action against the UB group firms, Kingfisher Airlines and UB engineering as the company failed to file a timely report of their financial results for two consecutive quarters March 2014 and June 2014. The big board NSE and BSE have announced that the Vijay Mallya led firms will be shifted to the restricted trade category or "Z" section from September 24. A Z-segment is a segment wherein no speculative trading is allowed and delivery of shares and payment of consideration amount becomes binding factor.

On the similar lines the stock exchanges had also announced, same action against another four companies; California Software Company, Surya Pharmaceutical, Goenka Diamonds and Varun Industries. Apart from that, the exchange is also planning to shift another 25 companies to the "Z" section category. Some of the companies include Birla Pacific Medspa, Best and Crompton Greaves and Pretto Leather Industries.

In the circular, the bourses BSE and NSE have also added, that the scrip of Kingfisher airlines and UB Engineering will be transferred to "Z-group" which will be effective from 24th September 2014, for the clause 41 of the listing agreement. As per the clause 41 of the listing agreement, it deals with non-compliance to timely reporting of financial results.