Shell cos clampdown: Sebi lifts curbs on Frontier Informatics

Sebi has lifted trading curbs on Frontier Informatics Ltd (FIL), which figured in the list of 'suspected shell companies', after finding no prima facie evidence of violations by the firm.
Last month, the Securities and Exchange Board of India (Sebi) had revoked the restrictions and actions taken against Lotus Eye Hospital and Institute Ltd that was named among the 331 suspected shell companies.
Amid the continuing crackdown on shell companies that are allegedly being used as conduits for illicit fund flows, Sebi has already ordered forensic audit of several firms, including JMD Ventures, Hit Kit Global Solutions, Kavit Industries, GV Films and IRIS Mediaworks.

"I do not find any prima facie evidence nor suspicion of misrepresentation by the company (FIL), misuse of books of accounts / funds of the company or violation of LODR (Listing Obligation and Disclosure Requirements) Regulations," Sebi Whole Time Member Madhabi Puri Buch said an order dated October 5.
In view of no prima facie evidence, the Sebi Member said there is no reasonable ground to further verify the financials of the company warranting an audit.
"I... revoke the actions envisaged in Sebi's letter dated August 7, 2017 and the consequential actions taken by stock exchanges against Frontier Informatics Ltd," she added.

FIL is among the firms against whom Sebi initiated action on August 7 by ordering trading restrictions, following receipt of a list of 331 "suspected shell companies" from the government.

Sebi's move came after it received the list of 331 suspected shell companies from the government on June 9 and was asked to initiate necessary action.
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.
In some instances, the Securities Appellate Tribunal asked the regulator to continue with its probe and pass orders expeditiously.