The Gitanjali Gems share surged more than 16% on Wednesday after the National Stock Exchange (NSE) lifted its ban on the trading activities of 26 entities ? including chairman Mehul Choksi ? who were being investigated for their trades in the scrip.
In a recent circular by the NSE released on Tuesday, the exchange stated that ?pending final action on the outcome of the investigation? It is decided to re-enable the UCC of all the 26 clients mentioned in the aforesaid circular for trading on the NSE with effect from October 23?.
?The investigation is complete and Sebi is looking at the investigation report,? a person familiar with the development said on the condition of anonymity. The person added that the capital markets regulator had not given a clean chit to these entities.
In a circular dated July 18, NSE had stated that the unique client code (UCC) of these entities will be disabled for a period of six months or till conclusion of investigation by the NSE.
Gitanjali Gems saw a spurt in volumes on Wednesday as more than 70 lakh shares of the Mumbai-based company changed hands on the NSE. The scrip closed at R63.95.
Shares of the company have been under pressure owing to concerns over promoters pledging their shares. Promoter holding in Gitanjali Gems has fallen to 33.28% in the September quarter against 55.02% in the previous quarter with lenders invoking the pledged shares. As on September 30, 21.78% or 78 lakh shares of the promoter holding was pledged.
In year-to-date period, the stock has lost 88%, while in the quarter ended September, the scrip has plunged nearly 77%.
Foreign institutional investors (FIIs) have pared their holding in the jewellery maker to 19.22% at the September quarter from 21.65% in the June quarter.
Domestic institutional investors (DIIs) have also marginally cut their stake to 5.75% from 5.77% during the same period.