NSE, BSE initiates audit against 100 shell firms

This, following Sebi directive to verify credentials and fundamentals of the suspected firms

The stock exchanges have initiated the process of audit on shell firms. According to the sources, the National Stock Exchange (NSE) and BSE will first audit 100 suspended companies of 331, listed by the government.

The move follows Securities and Exchange Board of India (Sebi) directives to stock exchanges to verify the credentials and fundamentals of the "331 suspected shell companies", which have been barred from trading.

In a letter dated August 9, the markets regulator has asked exchanges to seek the auditor's certificate from the companies, with a list of other disclosures. These include annual income-tax returns for three years and