This after Sebi directed the stock exchanges to initiate action against 331 listed companies which are suspected to be shell firms. SAT also said the capital markets regulator should hear the suspect shell companies’ representations and then pass orders. The regulator said that it has not concluded that all the companies are shell companies. Meanwhile, Sebi’s circular on suspected shell companies has generated mixed reactions amongst experts. It is not clear whether show cause or appropriate notice was given to these companies to justify whether these are actually shell companies or not.

Source: Indian Express August 09, 2017 22:41 UTC