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Exchanges release withheld payment in Surana Solar trades

According to reports, BSE and NSE which had held back payments in trades done in Surana Solar pending Sebi investigation have released the funds as on June 25, 2015.

In separate circulars posted on the exchange websites, broker members were informed of the decision to release the payment owed to them in the trades conducted in Surana Solar. As per exchange officials, while the regulator has allowed for the payments to go through, further course of action by the regulator was unknown.

“Sebi is still investigating the matter but they have asked to release the payments to the members,” said an exchange official.

Trades done in Surana Solar came under the Securities and Exchange Board of India (Sebi) scanner after heavy fluctuations in the stock price based on information that ace investor Rakesh Jhujhunwala had picked up stake in the company. It was later found out that the individual was just a namesake and that the Dalal Street veteran had not bought stake in the company.

As per the exchange notices, Sebi in an email sent on June 24 asked the exchanges to release the payout of June 10 and June 11, 2015 when the volatile trades in Surana Solar took place. The scrip of the company fell by over 30% between June 10 and 11 trapping investors. The regulator reacted by stopping the payment of these trades.

The stock has fallen by over 53% since June 10.

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