Kore Digital shares crash10% on Sebi's Rs 541 crore revenue charge
Kore Digital shares plunged after Sebi barred the company and key executives from the securities market over alleged financial statement manipulation, non-genuine subsidiaries and diversion of preferential issue proceeds.
Kore Digital's shares fell 10% following a regulatory order from India's market regulator Sebi. The investigation found issues with the company's financial statements, including manipulated figures, non-existent subsidiaries, suspicious accounting entries and the misuse of funds from a preferential issue. Sebi barred the company's MD, CEO and CFO from trading its shares and restricted the company from accessing public funds.
The regulator also prohibited the stock from moving from its SME platform to the main board. A forensic auditor will examine Kore Digital's books from its listing in June 2023 to March 31, 2026. Sebi's probe centered around three companies acquired by Kore Digital - Franken Telecom, Wolter Infratech and KDL Realinfra. The regulator alleged that these subsidiaries were created just before the acquisition, had the same registered address and showed little to no activity with the Ministry of Corporate Affairs.
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