Mumbai: National Stock Exchange of India Ltd, which runs India’s largest bourse in terms of trade volume, on Thursday suspended trading facilities of 26 entities in connection with trading in Gitanjali Gems Ltd by a set of clients.
An NSE circular said that following a decision by the Securities and Exchange Board of India, or Sebi, and NSE, which are in the process of investigating the trading activity of Prime Broking Co. (India) Ltd and trading in Gitanjali Gems Ltd by a set of clients, the so-called Unique Client Code (UCC) of 26 entities, including that of Mehul Choksi, chairman and managing director of Gitanjali Group, will be disabled from trading for six months or till the conclusion of the investigation. The entities include Albers Diamonds Pvt. Ltd, Avtar Gems Pvt. Ltd, Mehul Choksi, Pinky Agro Foods Pvt. Ltd, Prime Research and Advisory Ltd, Prime Securities Ltd, and Shraddha Garments Pvt. Ltd, among others.
“I just came to know. I am very surprised,” said Choksi. He plans to review all his options and appeal to the Securities Appellate Tribunal that hears cases filed against Sebi orders.
A Press Trust of India report said all the 26 entities are suspected to be linked to Prime Broking, which holds 1.85% stake in Gitanjali Gems, where Choksi is the main promoter with a 51% stake. The Gitanjali Gems stock has fallen sharply in the past one week from about Rs.150 to nearly Rs.115, while the shares were trading much higher at about Rs.550 level a month ago.
PTI contributed to this story.