Shares of J Kumar Infra Projects Monday were locked in lower circuit of 20 per cent on the stock exchanges after Sebi directed bourses to appoint an independent auditor for forensic audit of the company.
The scrip of the company crashed 20 per cent to hit the lowest trading permissible limit of the day at Rs 164.40 on the BSE.
Similar movements were witnessed on the NSE, wherein stocks settled at Rs 162.60 down by 19.98 per cent, which is the lower circuit.
Moreover, it touched a 52-week low on both the exchanges.
Notably, the firm had figured among 331 suspected shell companies.
On Friday, Securities and Exchange Board of India (Sebi) had passed an interim order directing the bourses to appoint an independent auditor to "further verify misrepresentation including of financial and/or business activities of J Kumar Infra".
The markets regulator Sebi also asked to look into the role of key management personnel, directors and promoters.
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Besides, Sebi said it doubts authenticity of the documents submitted by J Kumar with regard to PACL as per the interim order.
Accordingly, it has asked the auditor to look into the misuse of the books of accounts including facilitation and accommodation entries or compromise of minority share holder interest with respect to its agreement with PACL.
The market regulator has given 30 days to J Kumar Infra to respond to the interim order.
Following the Sebi order, J Kumar Infra in a filing to the exchanges, on Saturday, said it will file its reply/objections on the interim order and will seek personal hearing with regulator in this matter.
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