Suspected shell firms: BSE imposes trade curbs on remaining 5

This, to cover all 167 active stocks from Sebi's list of 331 suspected shell companies

Leading stock exchange BSE today imposed maximum trading curbs on five remaining firms from Sebi's list of '331 suspected shell companies', expanding the restrictions to a total of 167 stocks traded on its platforms.

Out of the total list, trading in 164 companies had already been suspended for various penal reasons or as part of surveillance measures, before Sebi issued directions to the stock exchanges seeking actions against 331 firms, alleged to have indulged in tax-related and other violations.

Out of the 167 actively traded companies, BSE announced maximum trading restrictions -- Stage VI of Graded Surveillance Measures (GSM) -- on the same day of Sebi's August 7 direction by imposing the directed curbs with effect from August 8.

In a circular issued today in furtherance to the Monday circular, the BSE said the remaining five securities will also be moved to GSM Stage VI under the same directions with effect from August 10 and all provisions stated in the Sebi directions shall be applicable to these companies.

These five companies are Inter Globe Finance Ltd, Green Fire Agri Commodities Ltd, NovaGold Petro Resources Ltd, Triton Corp Ltd and Bhagyashree Leasing & Finance Ltd.

Earlier on Monday, the 162 companies on which these curbs were imposed included ATN International, Adhunik Industries, Anshu's Clothing, Assam Company, Birla Cotsyn, Cals Refineries, Filmcity Media, GV Films, JKumar Infraprojects, Kwality Credit and Leasing, Lotus Eye Hospital, MVL Ltd, Nicco Corp, Nimbus Foods, NU TEK India, Parsvnath Developers, REI Ago, REI Six Ten Retail, Sanguine Media and Zenith Birla.

Some of these firms today approached SAT against Sebi and the BSE for being tagged as shell companies.

In a regulatory filing, Inter Globe Finance today said it has made representations to Sebi and the BSE on the matter.

The company said it is a "surprise" to note that its name has been mentioned in Sebi's list of 331 firms.

"At the outset we would like to inform you that we are not a "shell company" as alleged. We are not a company which can by any stretch of imagination be termed as such and we are a healthy profit making company having an annual turnover of over Rs 77.50 crore and profit of Rs 2.45 crore during the Financial Year 2016-17.

"We also have over 13,900 plus shareholders and paid dividends regularly to our shareholders since 2011. Our scrip is actively traded in BSE and we have also complied with all the regulations and at no time the authorities had issued any notices to us in this regard," the company said.

It further said the company has no investor complaints which are pending and there is no income tax department matter which was pending and therefore keeping it under shell company is "totally unwarranted and uncalled for".

The company also asserted that there has never been any occasion when it has been indulged in any kind of malpractices in stock market and asked the regulator and the exchange to withdraw their directions and allow normal trading in its stock.