India markets regulator bars Kore Digital from fundraising, alleges financial manipulation
India markets regulator bars Kore Digital from fundraising, alleges financial manipulation Sept 17 (Reuters) - India's markets regulator has barred telecom infrastructure firm Kore Digital KORD.NS from raising money from the public and blocked its migration to the main stock exchange board, alleging financial irregularities.
In a notification issued on Thursday, the Securities and Exchange Board of India said Kore Digital inflated revenue through non-genuine subsidiaries and manipulated financial statements.
Here are more details:
SEBI said its findings showed that since Kore acquired three subsidiaries in late 2024, those units had accounted for about 75% of the company's revenue on average.
However, site visits found no evidence that the three subsidiaries and their step-down subsidiaries operated from their stated addresses, raising questions about whether they actually existed, the regulator said.
Incorporated in 2009, Kore Digital listed on NSE's SME platform on June 14, 2023 and was eligible to migrate to the main stock exchange board on June 14, 2026.
SEBI has barred Managing Director Ravindra Doshi, CEO Chaitanya Doshi and CFO Kashmira Doshi from trading in the company's shares and ordered a forensic audit of Kore's books.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Diti Pujara)
((Abhinav.Parmar@thomsonreuters.com;))
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