SAT Lifts Curbs on Parsvnath, 5 Others, but Probes can Go On
Mumbai: The Securities Appellate Tribunal (SAT) on Friday lifted curbs on trading in shares of six suspected shell companies a day after it allowed transactions to resume in the scrips of J Kumar Infraprojects and Prakash Industries, providing relief to investors in firms that reportedly deal in industries as diverse as property and alcoholic beverages.
“It is made clear that this order shall not come in the way of Sebi as well as the stock exchanges to investigate the case of the appellant company and initiate proceedings if deemed fit,” the SAT said, referring to its ruling that would allow trading to resume in the six counters.
The companies granted relief by the SAT include Parsvnath Developers, Kavit Industries, Pincon Spirit, Signet Industries, SQS India BFSI, and Kkalpana Industries.
Parsvnath, for instance, is known as a property developer in and around the outlying suburbs of Delhi-NCR, while the website of Kolkata-based Pincon says the company is engaged in blending alcoholic beverages.
On Monday, India’s market regulator Sebi directed stock exchanges to take action against 331 suspected shell companies. The eight provided relief by SAT featured in the original list of stocks facing Sebi curbs.
Stock exchanges have said that these six companies will be moved out of the Graded Surveillance Measure framework and be available for trading with effect from Monday.