Indian stock exchanges have announced they will restrict trading of Jet Airways’ shares, in another sign that the prospects of resurrecting the grounded airline are increasingly bleak.

Both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) said they will suspend Jet Airways from the “futures and options” trading segment, effective June 28. This was described as a “preventative surveillance measure.”

Jet Airways suspended its few remaining operations April 17 after running out of money to pay lessors, creditors, staff and other suppliers.

The exchanges “have been seeking clarification from [Jet] in the recent past with respect to various rumors floating in the market,” the NSE and BSE said in notices to their members. “However, the company has failed to provide prompt responses and the responses received are not clear and satisfactory.”

Another issue cited by the exchanges is Jet’s declaration that it is “not in a position to consider and approve the audited financial result” for its fiscal year ended March 31. These factors, together with “observations made by the auditor of the company,” led to the trading decision. The exchanges said they have “concerns with regard to continuity of flow of information about the company which is very vital for the appropriate price discovery of the scrip … hence, trading in the scrip may not reflect the actual status of the company.”

Jet Airways’ stock was down by 21% on the NSE as of midday June 13, compared to the previous day’s prices. This put its value at a new low for the preceding 12 months.

The exchanges have sent multiple requests to Jet Airways to clarify news articles, mainly concerning efforts by lenders to put together a new group of investors. BSE issued its most recent requests for clarification on May 28 and June 11, and no responses have been filed. The last response from Jet to such a response was on May 27, when the airline said it is “not in a position to comment” as it is not involved in the investor bidding process.

Negotiations to find suitable investors for Jet are being controlled by a consortium of lenders led by the State Bank of India (SBI). Despite a flurry of talks, it is still unclear if an investment deal can be reached. Etihad Airways, the Hinduja Group and AdiGroup have been involved in these negotiations. One of the sticking points has been what level of Jet’s heavy debts will be written off.

Meanwhile, lessors have been applying to deregister more of their aircraft previously operated by Jet, a necessary step before the aircraft can be leased to other carriers. Almost 100 of Jet’s fleet had been deregistered as of June 13. The carrier had operated a fleet of about 120 aircraft last year.

Some of the former Jet Airways aircraft have been leased to other Indian airlines. LCC SpiceJet has reached short-term lease deals on 30 former Jet Airways’ Boeing 737s, and a SpiceJet executive told ATW the carrier has the opportunity to secure another 10.

Adrian Schofield, adrian.schofield@informa.com