Akruti City kicked out of F&O, Stock plummets

NSE vide its circular NSCC/F&O/C&S/932 dated 19th March,2009 has barred trading in shares of Akruti City in the Futures and Options Segment. The stock will continue to trade in Cash Segment. The share prices of Akruti City has skyrocketed by 290% since January 15th,2009. The stock reacted quickly to the news and was down 28% to Rs.1590. The stock had risen continuously despite the sever fall in stock markets and had raised doubts on the trading pattern.

Fallout of NSE Circular
1. All existing contracts in the underlying AKRUTI i.e. contracts with expiry dates 26 March 2009, 30 April 2009 and 28 May 2009 shall expire on 26 March 2009 and shall be finally settled at the relevant settlement price.

2. The settlement price to be reckoned for the purpose of final settlement shall be the closing price of AKRUTI in the Capital Market segment of NSE on 26 March 2009.

3. The details of final settlement in respect of AKRUTI shall be available in the F_PS03 and F_PS04 reports downloaded to members on 26 March 2009.

4. All positions in the existing futures and options contracts on the underlying AKRUTI shall cease to exist pursuant to the final settlement on 26 March 2009.

5. The Pay in/pay out of final settlement of all F&O contracts on AKRUTI shall be on 30 March 2009 (T+1 day).

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