NEW YORK: The Nasdaq Stock Market's decision to suspend one of its own listing rules comes as an avalanche of shares tumble below the $1 threshold, and is intended to avoid the mass delistings that followed the burst of the dot-com bubble.

Last week, parent company Nasdaq OMX Group filed a request with the US Securities and Exchange Commission to temporarily suspend the minimum price requirement that protects listed companies from becoming penny stocks.

It said in the filing that "US and world financial markets have faced almost unprecedented turmoil," which has undercut the share prices of companies that would otherwise remain suitable for continued listing.

The SEC endorsed the suspension, which went into effect on Friday and will end Friday Jan 16. Magnus Bocker, Nasdaq's president, told media the measure is "a very natural thing when the market is in disarray like it is right now." "We saw the same things following Sept 11. There is so much uncertainty in the equity markets right now for so many companies, that focusing short-term on that rule is just the wrong focus," he said in an interview.

Nasdaq, traditionally home to technology stocks but now more diversified, said in the filing that the number of stocks falling below $1 has increased "dramatically" from last year, particularly this month. At the end of September, 227 securities were penny stocks, up from 64 at the same time last year, the exchange said.

By Oct 9, the number had jumped to 344. Among the Nasdaq's new penny stocks, satellite radio company Sirius XM Radio Inc said it is considering a reverse stock split, which would double its share price while halving the number of shares.

On the rival New York Stock Exchange, drugstore chain Rite Aid Corp, retailer Circuit City Stores Inc, and Internet-based calling firm Vonage Holdings Corp all recently dipped below the $1 level. They now trade on NYSE's small-cap Arca platform.

Glenn Tyranski, senior vice president of financial compliance at NYSE Regulation, the arm's length regulatory arm at exchange parent NYSE Euronext, said about 20 listings are below the minimum price requirement. But NYSE is not now considering suspending its price requirement, he told media. "It's more than we've had previously, but we don't have that wave of people that are tripping the (requirement) yet."

Another crisis, another suspension

While NYSE has never suspended its price requirements, Nasdaq did so shortly after the Sept 11, 2001 attacks on the United States, in an effort to keep plunging stocks on the public market. That suspension also came amid the stock market downturn caused by tumbling tech stocks, or the bursting of the "dot-com bubble," which swelled to its maximum size in 2000.

Scores of Internet companies were wiped out over the next two years, badly shaking the tech-heavy Nasdaq. Although the current crisis is centered on the financial sector, the exchange wants to avoid a similar exodus of listings, from which it derives about 16 percent of overall revenue.

Diego Perfumo, analyst at Equity Research Desk, a Connecticut-based advisory firm specializing in exchanges, said the rule suspension protects companies with "sound business models that are trading below their fundamental value."

"This measure removes additional selling pressures on the stock from institutional investors that have a positive view of the long term prospects but are only allowed to invest in 'listed' companies," Perfumo said. As of Sept 30, Nasdaq had delisted about twice as many stocks as it had in the same period last year, according to data from the exchange. The two dominant US exchanges have slightly different price requirements.

On the larger NYSE, a listed companies whose average closing price dips below $1 in the last 30 days receives a warning that it must boost its share price within 6 months or face delisting. On the Nasdaq, companies receive the warning when they close below $1 for 30 consecutive days. After the suspension, Nasdaq said it would reevaluate the share prices of its listed companies based on Jan 19, 2009 data.

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NEW DELHI (Reuters) - Indian airlines, state-run refiners and the government will meet on on Wednesday to try to find a solution to how the oil firms can recover overdue jet fuel bills of more than $400 million.

"We are meeting tomorrow ... I hope we will find a solution. Our oil companies are doing their best to help them," oil minister Murli Deora told reporters on Tuesday, putting the outstanding payments at 20 billion rupees.

"Almost all the airlines haven't paid their dues. If you make a commitment, you must pay, but it doesn't mean that we shouldn't help the airlines."

Last week, Deora had said Jet Airways, Kingfisher Airlines Ltd and National Aviation Company of India Ltd (NACIL), which runs flag carries Air India, had defaulted on payment of their jet fuel bills to state refiners.

Kingfisher and Jet will be among the carriers meeting with Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp on Wednesday, Deora said. Civil aviation minister Praful Patel will also attend.

A senior official of UB Group, which holds a controlling stake in the Kingfisher, said last week the firm was in talks to repay its outstanding dues in phased manner.

Jet and Kingfisher, India's leading private-sector airlines, last week formed an alliance to cut costs through code-sharing and combining ticketing and ground services.

ATF, or aviation turbine fuel, makes up 30 to 45 percent of an Indian airline's operating cost. In August, a kilo-litre of ATF cost 73,600 rupees in Mumbai, compared with 46,500 rupees equivalent in Singapore.

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Today it was hell for shorters in Indian Stock Market. Market behaved like it was pause for a big ticket move. It was fresh spell of buying by funds and retail investors and encouraging global cues. Intense buying was seen across board. Indian markets outperformed its Asian peers as both the benchmark indices surged nearly 4% in todays trade. The Sensex ended the day with a gain of 460.30 points, or 4.50% at 10,683.39 after touching a high of 10,750.20 and a low of 10,250.23. The broad-based NSE Nifty gained 112.10 points, or 3.59% at 3,234.90 after hitting a high of 3,254.85 and a low of 3,117.35. BSE Midcap and Smallcap index rose over 2% each.

Hang Seng and Shanghai, in fact closed in red. European markets were trading with average gains of one percent. US stock futures however, were down by same magnitude. French government said it would buy subordinated debt issued by the countrys six biggest banks. Stocks extended gains as money market rates declined in London.

All the BSE sectoral indices closed in green. Consumer Durable and Realty indices gained the most, up 9% and 8.3% respectively. JP Associate and TCS were the top gainers among sensex stocks, surging 16% and 13% respectively, while M & M and Hindalco were the sole sensex losers, down 2% and 1.7% respectively.

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