Securities and Exchange Board of India (Sebi) has ordered an audit of three more firms — Indian Infotech and Software, Newever Trade Wings and Shivom Investment and Consultancy — which figures among 331 suspected shell companies.
This has taken the total number of firms to 11 against which the Sebi has ordered an audit.
In three separate orders passed on September 21, Sebi said the regulator, prima facie, found evidence on misrepresentation by these companies
and strong suspicion of misuse of books/funds by them.
is of the view that a detailed examination or audit should be undertaken to unearth the entire extent of violations.
Sebi has asked the exchange concerned to appoint an independent auditor to further verify misrepresentation, including of financials
or business of these three companies, and misuse of the books of accounts, including facilitation of accommodation entries.
Besides, it said trading in securities of these three companies
will be "reverted to the status as it stood prior to issuance of letter dated August 7, 2017 by Sebi".
Further, promoters and directors of the firms have been allowed only to buy securities of their respective companies.
However, shares held by them in their respective firms will not be allowed to be transferred for sale by depositories.
In a separate order yesterday, Sebi has lifted trading curbs imposed on Cybermate Infotek
and the consequential actions taken by stock exchanges against the firm.
"There is no reasonable ground to further verify the financials
of the company (Cybermate
Infotek) warranting an audit," Sebi Whole-Time Member Madhabi Puri Buch said.
Sebi, on August 7, had initiated action against the 331 suspected shell companies
by ordering trading restrictions, following receipt of a list of such firms from the government.
While the curbs were imposed on the 331 firms from August 8 onwards, they were eased with regard to some companies
following appeals against the ruling.
found that the companies
identified as shell companies
were potentially involved in misrepresentation, including of their financials
and business, in violation of listing regulations.
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