Shell firms: Tatia Global Ventures and Nu Tek India under Sebi scanner

Sebi has ordered forensic audit of the financials of Tatia Global Venture and Nu Tek India, which were among the list of 331 suspected companies on whom trading curbs were imposed in August.

Even as it has called for forensic audit, the regulator has lifted the trading restrictions imposed on them.

Tatia Global Venture Ltd (TGVL) and Nu Tek India Ltd (NTIL) were in the list of 331 suspected shell companies that was provided by the corporate affairs ministry to Sebi. In recent weeks, the regulator has revoked the curbs on many such firms.

In two separate orders, the watchdog has ordered forensic audit to ascertain whether they misrepresented financials and misused funds.

About TGVL, Securities and Exchange Board of India (Sebi) said there is significant discrepancy with respect to land transaction involving the company's subsidiaries.

"Further, there have been several transactions which prima facie appear to be detrimental to the interest of public shareholders of TGVL and thus, there is a suspicion of misuse of funds/ books by TGVL," the regulator said in an order dated October 9.

In another order related to NTIL, the watchdog said that in view of the prima facie observations on misrepresentation of books of accounts by the company and the misuse of books of accounts/ funds, "the persons who are in control of the company and the directors of the company are prima facie liable for action by Sebi".

The stock exchange has been asked to appoint an independent forensic auditor in both cases.

Both TGVL and NTIL have been given 30 days time to file their reply or objections to the interim order.