why force motor ( also Novartis ) is not being traded at NSE since October 2023 … is it because of expiry of “Permitted to trade category” duration …as like shares of Abbot lab , Bayer crop etc which are traded but not listed at NSE.
@ShubhS9 @KarthikAcharya
You’re correct that Force Motors hasn’t been traded on the NSE (National Stock Exchange of India) since October 2023.
The reason for Force Motors’ suspension from the NSE is due to the expiry of its Permitted to Trade category duration. This category allows unlisted companies to trade temporarily on the exchange under specific conditions. Once the permitted period ends, trading automatically stops unless the company takes steps to get listed officially.
Here are some details about the situation:
- Expiry of Permitted to Trade category: Force Motors obtained the Permitted to Trade status on the NSE in 2017. This status typically lasts for three years, with the possibility of one extension upon approval. The company’s permitted period likely expired in October 2023, leading to the trading suspension.
- No official listing on NSE: Force Motors is not officially listed on the NSE. Official listing involves fulfilling stricter compliance requirements and undergoing a formal listing process.
- Trading continues on BSE: While suspended from the NSE, Force Motors continues to trade actively on the BSE.
As of today, January 9, 2024, there’s no official update on whether Force Motors is planning to get listed on the NSE or obtain another Permitted to Trade status. Investors interested in the company should keep an eye on official announcements from the exchange or the company itself for any developments.
It’s important to note that the suspension from the NSE doesn’t necessarily imply any negative issues with the company. It’s simply a consequence of the permitted trading period ending. However, the limited trading options on the BSE might affect market liquidity and make it more challenging for some investors to buy or sell Force Motors shares.
I hope this clarifies the situation and provides helpful information. If you have any further questions about Force Motors or stock market dynamics in India, feel free to ask!
Here’s a breakdown of the similarities and differences:
Similarities:
- All three companies (Force Motors, Abbott Labs, and Bayer CropScience) are not officially listed on the NSE.
- They all obtained the Permitted to Trade status, which allows them to trade temporarily on the exchange under specific conditions.
- Their trading on the NSE is subject to the expiry of the Permitted to Trade duration, typically three years with a possible one-year extension.
Differences:
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Current trading status: While Force Motors’ Permitted to Trade period expired in October 2023, leading to its suspension, Abbott Labs and Bayer CropScience’s permitted periods are still active, allowing them to continue trading on the NSE.
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Market capitalization: Force Motors is a smaller company compared to Abbott Labs and Bayer CropScience, which might explain why it didn’t pursue an official listing on the NSE after the Permitted to Trade period ended.
Disclaimer:
This information is fully given by BARD (Google).
1 Like
MUCH APPRECIATED . thanks for the detailed information .