The Securities Appellate Tribunal (SAT) will tomorrow hear pleas by Parsvnath Developers and Kavit Industries against trading restrictions imposed on their shares by exchanges on markets regulator Sebi's directions.
The tribunal today stayed trading restrictions imposed on JKumar Infraprojects and Prakash Industries, which were also on a list of 331 "suspected shell companies" referred by the government to Sebi.
Trading restrictions were imposed on these companies with effect from August 8 after which many of them approached SAT.
While Parsvnath Developers had also filed its appeal yesterday, the tribunal has listed it for hearing tomorrow. Kavit Industries plea is also listed for tomorrow, as per the cause list of the SAT.
Hearing began on pleas by JKumar Infraprojects and Prakash Industries yesterday and SAT today stayed the trading restrictions imposed them. These shares can resume normal trading tomorrow.
Kavit Industries, a Gujarat-based firm, is manufacturer and supplier of edible oil, and Parsvnath Developers is a Delhi-based real estate company.
The Gujarat-based firm today posted a net profit of Rs 31 lakh for the three months ended June 30, higher than Rs 7.4 lakh reported in the year-ago period. Besides, the company's revenue rose to Rs 30 crore in the period under review from Rs 2.59 crore in the April-June period of 2016-17.
Markets regulator Sebi, on Monday, had asked the stock exchanges to restrict trading in shares of 331 "suspected shell companies", some of which have investments by several well-known domestic and foreign investors.
The move came after the watchdog received the list of such companies from the corporate affairs ministry and many of the 331 firms are under the scanner of the Serious Fraud Investigation Office (SFIO) and the Income Tax Department.
On August 8, many of the companies tagged annual reports and other financial along with their filings to press upon the exchanges that they are not shell companies and are in compliance with all regulations.
Out of the 331 companies on the list, more than 160 are actively traded shares on the exchanges.
Irrigation equipment maker Signet Industries expressed "suprise and shock" on market regulator mentioning its name in the list of shell companies.
The company in a filing to the BSE said it has a turnover of Rs 1,000 crore, profit before tax of Rs 24 crore and paid Rs 200 crore towards central and state taxes in the last three years.
"Our company is not a company which can be by any stretch of imagination be termed as shell company. In the interest of our company and our stakeholders ...The company has taken up the matter strongly with exchanges and authorities," it said.
All the bankers to the company like UCO Bank, Dena Bank, Punjab National Bank, Union Bank have re-endorsed the credit worthiness of the company, it claimed.
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