Dec 08, 2017 11:52 AM IST | Source:

SEBI may conduct forensic audit of 10-12 out of 331 suspected shell cos; others get clean chit

These 10-12 companies will be from the 48 suspected firms listed on NSE and 8 from 162 companies listed on BSE.

The Securities and Exchange Board of India (SEBI) will conduct forensic audit of only around 10-12 firms out of a list of 331 suspected shell companies released earlier.

The decision comes after the stock exchanges submitted their report on the companies in the list.

These 10-12 companies include 2 of the 48 suspected firms listed on NSE, and 8 out of 162 companies listed on BSE, a source-based report the Business Standard said.

From the 48 NSE listed companies, 34 are active and the remaining 14 are suspended companies.

"Sebi has directed the NSE to conduct forensic audit on two companies — ARSS Infrastructure Projects and Nu Tek India. The NSE has initiated the audit. For the remaining 22 companies, examination of documents submitted by them is in process,” said an NSE spokesperson told BS.

After verification, the remaining companies have been given a clean chit, the report said. The companies were asked to submit documents like compliance with Companies Act and SEBI, auditor's certificate, tax returns filed and tax dispute papers, if any.

BSE and NSE had appointed a committee of auditors to conduct audit of the 331 companies. The audit of the shortlisted 10-12 firms is likely to take few more months, the report said.

However, there is no clarity on the basis of investigation by SEBI. The market regulator has not specified on what criteria these companies were classified as 'shell companies' by the Ministry of Corporate Affairs.

In August this year, the Ministry had revealed names of the 331 companies and had directed the market regulator to suspend them. This is a part of the government's fight against black money, for which it had also implemented demonetisation last November.

tags #Economy

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