SAT stays trading curb on suspected shell cos JPrakash, Prakash Industries
These two companies are among the 331 suspected shell companies identified by the government.
Mumbai: The Securities Appellate Tribunal on Thursday stayed trading restrictions imposed on JKumar Infraprojects and Prakash Industries, which are among the 331 suspected shell companies identified by the government.
Markets regulator Sebi had asked the stock exchanges to restrict trading in shares of 331 "suspected shell companies", some of which have investments by several well-known domestic and foreign investors.
The move came after the watchdog received the list of such companies from the corporate affairs ministry and many of the 331 firms are under the scanner of the Serious Fraud Investigation Office (SFIO) and the Income Tax Department.
JKumar Infraprojects and Prakash Industries had moved the SAT against the Sebi directions.
Following their appeals, the SAT has stayed the trading restrictions imposed on the two companies and these shares can resume normal trading tomorrow.
On August 8, many of the companies tagged annual reports and other financials along with their filings to press upon the exchanges that they are not shell companies and are in compliance with all regulations.
Out of the 331 companies on the list, more than 160 are actively traded shares on the exchanges.