New Delhi: Market regulator Sebi has asked the exchanges to restrict trading in shares of 331 companies, some of which have investments by several well-known domestic and foreign investors and the move spooked overall market sentiments on fears about possible action against more such firms.
While trading has already been restricted to just once a month (on first Monday of the month) in shares of 162 companies from the list, others may soon face similar or even stricter curbs, the regulatory and market officials said.
In addition to the curbs imposed by the capital market regulator and the stock exchanges, these companies may face further action depending on the outcome of the probes by the income tax department and the Serious Fraud Investigation Office (SFIO), among other agencies.
West Bengal (127) accounts for the largest number of companies on the list of 331 suspected shell firms, referred by the corporate affairs ministry to Sebi.
Besides, Gujarat and Delhi also account for a large number of such firms, against which the capital market regulator Sebi has recommended trading restrictions by the stock exchanges.
While at least 124 companies are believed to be under scanner for alleged tax evasion, further 175 firms were being investigated by the Serious Fraud Investigation Office (SFIO).
Check out the complete list of the 331 shell companies.
