Sebi has ordered a forensic audit of Hit Kit Global Solutions ltd (HKGSl), which figures among 331 suspected shell companies under regulatory scanner, even as trading curbs imposed on the firm have been removed. Earlier this week, the Sebi had ordered forensic of two other such companies -- Kavit Industries and GV Films, while revoking trading curbs on their shares.
In an interim order dated September 7, Sebi said there are inconsistencies between HKGSl’s books of accounts and its submissions before the regulator. “Also, there is lack of documents to substantiate the transactions entered into by the company. Thus, even though there is no prima facie evidence of misrepresentation or misuse of books of accounts/funds by the company, it is imperative that in the interest of investors, the financials of the company be independently audited to establish their genuineness,” Sebi said.
The regulator also noted that it would be appropriate that the restrictions imposed on promoters and directors of the company be removed and trading in securities of HKGSl be reverted to the status as it stood prior to issuance of letter dated August 7 by Sebi.