India's Jet Airways plunges as bourse moves to limit speculative trading

Shares of Jet Airways sunk over 23% to a record low on Thursday after India’s largest stock exchange said the carrier would soon no longer be traded in the derivatives market, while day-trading in the stock would also be barred, in a bid to curb speculative trading in the troubled company. At its lowest in the current trading session, the stock had fallen as much as 65% since the airline shut down its operations in April after failing to secure funds from its lenders to keep it afloat. As a “preventive surveillance measure”, Jet’s security will be moved to the ‘trade for trade’ segment, NSE said in a circular late Wednesday. This means that a buyer of the stock can only sell shares purchased two days after the purchase date, and no longer trade those shares intraday, reducing speculation in the stock. The move also means that circuit breakers will soon apply on the stock, meaning any downside or upside will be limited to 5% initially and thereafter it could widen depending on trading patterns. One market source said the NSE’s moves have triggered a sharp drop in the stock, as speculative traders are exiting, ahead of the new limitations going into effect on June 28.<br/>