Hi Salman....as long as the company is listed and as long it attracts traders and investors it will continue to trade. The fact that it is loss making should not be a concern. In fact there are several listed companies that are loss making but still continue to trade...Ex - Suzlon.Â
Delisting a company is a HUGE process and may take several years to complete the process. Here is a SEBI link on delisting procedure.Â
KFA is under huge loss as a result of which the stock prices have come crashing from as high as Rs.80 to the currently traded price of Rs.3.5.
I don’t think KFA has been declared as a bankrupt entity as of now. Their balance sheets have huge liabilities and very little asset to show. As Karthik’s mentioned, a company’s profitability has nothing to do with it being listed on the Exchange.
As a precautionary measure owing to the volatility in stock, NSE has moved the stock from EQ category to Trade for Trade category (compulsory delivery).
know KFA is not bankrupt, just absurd they are on exchange even though not operational… thanks for the info guys…
They are operational… at least on papers. They have reported a net operating income of 503Crs for Fy’13…its just that they a little of 4300 Crs in losses 