As reported by Moneycontrol on Monday, the companies will trade on the exchanges only once a month, the first Monday of every month.
Markets regulator SEBI has sent names of 331 shell companies, as identified by Ministry of Corporate Affairs, to the stock exchanges and has asked them to initiate measures, reveal bourses.
Some of the companies named by SEBI include Prakash Industries, SQS BFSI, Parsvnath Developers, Pincon Spirit, Gallantt Ispat, J Kumar Infra, Prime Capital Market, Dwitiya Trading, Adhunik Industries and VB Industries.
Moneycontrol was the first to report this on Monday.
Here's the full list of the 331 companies that have been identified:
SEBI has directed exchanges to identify listed companies from the list and place them in Stage VI of the Graded Surveillance Measure (GSM) with immediate effect, which means trading in these identified securities will be permitted only once a month — first Monday of every month.
Exchanges have been asked to appoint an independent auditor to conduct audit of these listed companies and, if necessary, even forensic audit.
After the verification, if exchanges do not find appropriate credentials/fundamentals about the existence of these companies, they will delist the company's stock. Even the companies' holdings in any depository account will be frozen till the process is complete.
Further, no upward price movement will be allowed in these stocks and an additional surveillance deposit of 200 percent of trade value will be collected from buyers.(Corrigendum: A previous version of this article erroneously named Prime Securities as one of the shell companies in the list instead of Prime Capital Market. The error is regretted.)