Gail to replace JP Associates in Sensex from today/news09012012

Gail India surged over 1% and touched the day's low of Rs390.10 and Jaiprakash Associates fell over 2% and touched the 52-week low of Rs50.45 on the BSE.

The stock of JP Associates may come under pressure this week for more than one reason.

The company's stock will be excluded from the BSE Sensex from today (January 09, 2012) and will be replaced by Gail India. JP Associates will, however, be part of NSE's Nifty and carries a weight of 0.42%.

Besides, Securities and Exchange Board of India ( SEBI's) indictment of company officials for insider trading will also add more pressure to the stock. The market regulator had imposed a penalty totalling Rs70 lakh on three senior executives of JP Associates, including its Executive Chairman, Mr Manoj Gaur, and his relatives for involvement in insider trading.

Besides Mr Gaur, his wife and brother, SEBI also named the company's Senior Vice-President (Corporate Affairs) and the Company Secretary, Mr Harish K Vaid and his Hindu Undivided Family, as well as the Whole time Director, Mr S.D. Nailwal.

The case relates to the trading in the company stock during September 29-October 27, 2008. Meanwhile, Mr Gaur has decided to move the Securities Appellate Tribunal to challenge SEBI order.
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