J Kumar Infra jumps 12 pc on Sebi clearance from charges of misrepresenting financials

Shares of J Kumar Infraprojects on Wednesday surged nearly 20 per cent, before settling with a gain of 12 per cent, on bourses after the markets regulator Sebi cleared the company from charges of misrepresentation of financials.

The company's stock rose 11.7 per cent to close at Rs 143.70 on the BSE. During the day, the scrip rose as much as 19.97 per cent to Rs 154.35.

On the NSE, the stock closed 12.54 per cent higher at Rs 144. During the intra-day trade, the stock had hit a high of Rs 153.50 and a low of Rs 141.15.

Sebi on Monday said there are no reasonable grounds to believe misrepresentation of financials at J Kumar Infra which had figured among 331 suspected shell companies.

Consequently, Sebi has revoked its interim directions issued in September last year, wherein it had directed exchanges to appoint an independent auditor to conduct forensic audit of J Kumar Infra to verify misrepresentation, including financial or business activities of the company.

It had also asked the bourses to look into the role of key management personnel, directors and promoters.

"On the overall examination of various circumstances, I find that, in view of the materials adduced by JKIL, there are not adequate circumstances forming the reasonable grounds to believe that there is misrepresentation of financials," Sebi Whole-Time Member Madhabi Puri said in her 72-page order.