Exchanges bare fangs as first-stop regulators, nix Prabhat Dairy delisting

Sebi order directing the company to set aside Rs 1,292 crore throws light on key steps taken by both BSE and NSE, which led to a forensic audit at the company

Stock exchanges have shown their teeth as first-level regulators by refusing to greenlight the delisting plan of Prabhat Dairy, which has been hit by allegations of fraud. 

The order passed by markets regulator Securities and Exchange Board of India (Sebi) on Tuesday — directing the company to set aside Rs 1,292 crore — throws light on the crucial steps taken by the BSE and the NSE, which led to a forensic audit at the company known for its milk and dairy products.

Prompted by the markets regulator, the stock exchanges conducted a deep analysis of Prabhat Dairy’s public disclosures and submitted their