SEBI has directed bourses to initiate action against 331 suspected shell companies listed in the share markets. These scripts will not be available for trading from this month. The regulator’s directive came after the corporate affairs ministry shared a list of 331 listed companies that are suspected to be shell entities and could even face “compulsory delisting”.
In a communication sent to the BSE, the NSE and the Metropolitan Stock Exchange, the markets regulator has asked them to keep the 331 shares in stage four of the Graded Surveillance Mechanism (GSM) with immediate effect. Securities coming in stage four are permitted to trade only once a month under trade to trade category.
As part of efforts to curb the black money menace, the corporate affairs ministry has already cancelled the registration of more than 1.62 lakh companies that have not been carrying out business activities for long.