SEBI bars Kore Digital from fundraising, alleges financial manipulation
SEBI says Kore Digital inflated revenue through non-genuine subsidiaries and manipulated financial statements
India's Securities and Exchange Board of India (SEBI) has prohibited telecom infrastructure company Kore Digital from raising capital from the public and has blocked its transition to the primary stock exchange board, citing financial irregularities. In a notification released on Thursday, SEBI alleged that the firm had overstated revenue through non-existent subsidiaries and mismanaged financial statements.
According to SEBI, since Kore Digital took over three subsidiaries in late 2024, those entities constituted roughly 75% of the company's average annual revenue. However, SEBI's inspections found no proof that the three subsidiaries and their parent companies operated from their declared locations, casting doubt on their existence.
Founded in 2009, Kore Digital debuted on the National Stock Exchange's SME platform on June 14, 2023, and was permitted to move to the main stock exchange board on June 14, 2026. SEBI has barred the managing director, CEO, and CFO from trading the company's shares and mandated a forensic audit of Kore's financial records.
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