Sebi has told the stock exchanges to seek financial documents from the suspected shell companies and hear them out. Photo: Abhijit Bhatlekar/MintMumbai: Two days after asking stock exchanges to act against 331 listed entities suspected to be shell companies, the Securities and Exchange Board of India (Sebi) seemingly softened its stance on Wednesday, giving the firms an opportunity to be heard. “Sebi has asked NSE to seek documents from these 48 companies and verify the credentials and fundamentals of these companies. According to Monday night’s Sebi notification, the shares of the suspected shell companies will be traded only once a month until stock exchanges ascertain whether these are genuine or structures meant for fund diversion and tax evasion. Sebi’s communique said the regulator had based its decision on a letter from the ministry of corporate affairs identifying the 331 shell companies.

Source: Mint August 09, 2017 17:03 UTC