Most suspected shell firms get clean chit, 12 picked for forensic audit

Of 331 companies, 48 are listed on the NSE. Of this, 34 companies are active and 14 companies have been suspended.

Three months after suspending trade in 331 suspected shell companies, the capital market regulator, the Securities and Exchange Board of India (Sebi), has decided to take the investigation forward, but through forensic audit of only 10-12 firms.

According to sources, the stock exchanges have examined the credentials provided by these firms and submitted their report to the market regulator. After analysing the report, Sebi has picked only two companies out of the 48 suspected firms listed on the National Stock Exchange (NSE) for audit. Only eight companies out of 162 on the BSE have been picked for audit.

Sources say