Act against 331 shell companies, Sebi tells bourses

In its August 7 circular, the capital market regulator made it clear that these companies will not be allowed to trade this month.

The Securities and Exchange Board of India (Sebi) has asked stock exchanges to take action against 331 listed firms, which are alleged to be shell companies as per the Ministry of Corporate Affairs. 
 
In its August 7 circular, the capital market regulator made it clear that these companies will not be allowed to trade this month. 
 
Of 331, 162 companies are trading, while the rest have already been suspended. 
 
The Sebi  circular says shares of these 331 companies will be kept in  stage six of the Graded Surveillance Measures (GSM) with immediate effect.
 
These companies would also be subject to independent audit and also a forensic audit to examine their financials. 
 
If the audit doesn't find evidence of the companies' existence, they will be delisted and barred from trading on stock exchanges.
 
Source: Media reports

Event date: 
Wednesday, August 9, 2017

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