Markets regulator Sebi on Monday updated its board on action being taken against suspected shell firms, vowing to take appropriate steps against those indulging in stock price manipulation and falsification of books.
The regulator also told its board that steps were being taken to fast-track all pending cases in a time-bound manner, especially those where final orders have got delayed for more than a year since interim directions, regulatory sources said. It was observed that the pendency has accumulated mostly due to human resources-related constraints and legal issues.
At a board meeting here, Sebi also discussed coordinated efforts being made along with stock exchanges and other agencies including SFIO (Serious Fraud Investigation Office) and the Income Tax Department against such firms, regulatory sources said.
“The stock exchanges have been asked to submit a report on all suspected firms at the earliest about their credentials and fundamentals, as also about the trading patterns and past non-compliances on taxation-like matters. Besides, forensic audit are being done in several cases,” an official said.
“Based on the inputs from the stock exchanges, SFIO and other agencies, Sebi will assess the appropriateness of the preventive surveillance actions initiated against the shell firms and pass appropriate orders,” he added.