Three ‘shell’ companies challenge SEBI’s order

Out of the 331 suspected shell companies reported by market regulator Securities and Exchange Board of India (SEBI), three firms, namely, Prakash Industries, J Kumar Infraprojects and Parsvnath Developers, have moved the Securities and Appellate Tribunal (SAT) against the circular, reported a leading news agency.
 
The SAT, to review SEBI’s orders, held a hearing from representatives of Prakash Industries and J Kumar Infra. Hearing with representatives of Parsvnath is expected to be held tomorrow. 
 
Trading in 331 shell companies on the exchanges is halted and will be available only once in a month. 
SEBI’s decision has caused substantial worry in the markets as the list of suspected shell companies includes companies that have tangible and operational business. There is also not enough clarity on the criterion that SEBI took into consideration for calling 331 firms as suspected shell companies.