The suspension of the scrip/stock/sharesmeans that an exchange has temporarily stopped trading in a particular stock or other security. The suspension can be due serious concerns about a company’s assets, operations, or other financial information.The exchange can also suspend trading in the stock of a company if it suspects of misleading or illegal activity.Once a security issuspended, shares cannot trade until the suspension is lifted or lapses.
Such suspension can be revoked or trading in securities can be restored on the compliance of the following:
Checklist for Revocation of Suspension
Note 1 : The Method of Calculation of Reinstatement Fee (Effective From September 27, 2017):
For the companies in respect of which reference has been made to or which under the BIFR reference, a relief is granted to the extent of 50% of the reinstatement fees for the period starting from the date of reference to the BIFR till the date the company has come out of BIFR reference.
For the companies which are in the process of voluntary winding up or compulsorily winding up and the Exchange has suspended trading based on court order, if such companies do not want to go for winding up but want to go for activation/ revocation after complying with filings under Listing Agreement, the maximum cap of reinstatement fees would be Rs. 5 lakhs plus taxes.