Shares of Morepen Laboratories tanked 17 percent intraday on September 25 a day after SEBI prohibited the company from accessing the security market for a year.
The Securities and Exchange Board of India has directed prohibition on securities market's access and restraining from buying, selling or otherwise dealing in the securities, either directly or indirectly or in any other manner whatsoever, for a period of one year, to the company, as per a BSE release.
The company is seeking advice for pursuing suitable remedies, including filing an appeal before an appropriate forum.
However, the company clarified that the said global depository receipt (GDR) matter pertained to the year 2003, which was finally settled by the SEBI on September 24.
There was no impact on the existing securities listed with the stock exchanges as well as no financial implications on the business operation of the company of the said order, it said.
With reference to the ongoing preferential issue of fully convertible warrants (to be converted within 18 months), the company was seeking guidance regarding implication of the SEBI' s order and process to be followed to complete the said preferential issue of warrants, it said.
At 0952 hours, Morepen Laboratories was quoting at Rs 19.30, down Rs 2.45, or 11.26 percent on the BSE.
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