On the directives of SEBI, 331 suspected shell companies have taken big action. In this order, trading of stocks of these companies in the Stock Exchange closed on Tuesday. Due to this action, these stocks may have to face delisting soon. The Corporate Affairs Ministry recently shared a list of 331 such companies, which were suspected to have shell companies.
Under these surveillance exercises, an independent audit of these companies will be conducted and if necessary, a forensic audit can also be done to check their credentials.
331 suspicious shell companies stop trading in stocks
Market regulator SEBI asked to put these 331 stocks in a communication sent to the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the Metropolitan Stock Exchange (MSE) with immediate effect in the stage 4 of graded surveillance mechanism (GSM) I went. According to media reports, on Tuesday, BSE has put all these stocks into the stage 4 of GSM.
Trade only once a month
This means that normal trading will no longer be possible in these stocks. These stocks will no longer be available for trading. Stocks of GSM Stage-4 are traded only once a month, which is in the trade-to-trade category
The price of the stock will not increase
At the same time, the price movement will not be allowed in these stocks compared to the previous trading price. However, if this happens then Bayer will have to deposit 200% additional surveillance deposit of trade value. Exchanges will keep this amount for 5 months.
Independent auditor’s appointment
Exchanges have also been asked to appoint independent auditors for their audit in addition to ‘Process of Confirmation of Credit / Fundamentals of these Companies’. If required, a forensic audit can also be done to verify their credibility and fundamentals.