Sebi bans trade in suspected shell companies here is the full list

Sebi bans trade in suspected shell companies. Here is the full list

Sebi bans trade in suspected shell companies. Here is the full list .

Exchanges have also been asked to conduct an audit of these listed companies

Latest News Market regulator Securities and Exchange Board of India (Sebi) has directed stock exchanges to initiate action against 331 firms that it suspects are shell companies and are listed on the bourses.

Trading in all such listed securities, Sebi said, shall be placed in Stage VI of the Graded Surveillance Measure (GSM) with immediate effect. If any listed company out of the said list is already identified under any stage of GSM, it shall also be moved to GSM stage VI directly, the order says.

Under the stage VI of GSM framework, trading in these identified securities shall be permitted only once a month under trade to trade category.

That apart, any upward price movement in these securities shall not be permitted beyond the last traded price and additional surveillance deposit of 200% of trade value shall be collected form the Buyers which shall be retained with Exchanges for a period for five months, the order says.

The exchanges have also been asked to appoint an independent auditor to conduct audit of these listed companies and if necessary, even conduct forensic audit of these companies to verify its credentials / fundamentals.

Meanwhile, markets tumbled in trade on Tuesday, with the benchmark indices – the S&P BSE Sensex and the Nifty50 – slipping nearly 1% each in intra-day deals to hit a low of 31,915 and 9,947 levels, respectively.

Analysts do not blame the Sebi circular alone for Tuesday’s fall.

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