The Securities & Exchange Board of India has stated that there are no reasonable grounds to believe that there has been any misrepresentation of financials by J Kumar Infraprojects which had figured in a list of 331 suspected shell companies.
Consequently, the SEBI has revoked its interim directions which it had issued in September 2018 wherein it had directed stock exchanges to appoint an independent auditor to conduct a forensic audit of the company in order to verify any kind of misrepresentation.
Earlier, the SEBI had also asked the stock exchanges to look into the role of the company’s key management personnel, directors as well as promoters.
It may be recalled that in its earlier interim order, the SEBI had stated said it doubted the authenticity of documents submitted by J Kumar Infraprojects (JKIL) with regard to PACL Ltd which had mobilized crores of rupees through collective investment schemes.
The latest order has come after a detailed investigation of the matter.