Shell Banned or Shell-Shocked?
Sebi has notified that more than 300 companies would now be traded on the stock exchanges only on the first Monday of the month, and with riders, which sends a warning to investors in these companies. Shell companies are floated to hoodwink not just investors but also banks and tax authorities. The move will help curb corporate frauds and make our stock exchanges more attractive to small investors. The government should clamp down on these companies to recover the money defrauded by them.