Sebi revokes curbs on Orissa Sponge Iron & Steel

27 November 2017

Sebi lifted the curbs imposed on Orissa Sponge Iron & Steel Ltd, which was in the list of 331 suspected shell companies, after finding no “prima facie evidence” of misrepresentation of books.

The regulator had taken action against the 331 companies following a reference from the corporate affairs ministry.

Among others, there were trading restrictions on the company’s promoters. “In absence of prima facie evidence / suspicion of misrepresentation by the company, misuse of the books of accounts/ funds of the company or violation of LODR (Listing Obligation and Disclosure Requirements) Regulations, there is no reasonable ground to further verify the financials of the company warranting an audit,” Sebi Whole Time Member Madhabi Puri Buch said in the order.

Buch also said that she is of the considered view that the actions envisaged in Sebi’s letter dated August 7 against the company are “liable to be revoked”. “I note that the trading in the securities of the company was under suspension. However, the present order does not affect the trading status of the company as it stood immediately prior to issuance of letter dated August 7, 2017 by Sebi,” the order noted.

Source: Money Control