Sebi allows bourses to conduct forensic audit

Sources say this is a sequel to the discussion between Sebi's surveillance dept and the exchanges, on ways to curb such manipulation

The Securities and Exchange Board of India (Sebi) has empowered stock exchanges to conduct forensic audits on listed companies which seem dubious, being suspected of use as conduits for illicit fund flow.

An authorisation letter in this regard has been issued to the bourses. The latter may take action in this regard on their own initiative. Sources say this is a sequel to the discussion between Sebi's surveillance department and the exchanges, on ways to curb such manipulation.

The regulator wants exchanges to review suspect companies on a weekly basis and select those for forensic audit. Till now, the exchanges did not