Shares of J Kumar Infraprojects rallied nearly 20 per cent in Wednesday’s trade after market regulator Sebi cleared the company of charges relating to misrepresenting of books.
The scrip advanced 19.97 per cent to hit a high of Rs 154.35 on BSE. The gains were seen in an otherwise flat market. The benchmark BSE Sensex was trading 29 points, or 0.08 per cent, higher at 37,560.
Sebi on Monday said there are no reasonable grounds to believe misrepresentation of financials at J Kumar Infraprojects, which had figured among 331 suspected shell companies.
Consequently, Sebi revoked its interim directions issued in September last year, wherein it had directed exchanges to appoint an independent auditor to conduct forensic audit of J Kumar to verify misrepresentation, including financial or business activities of the company.
It had also asked the bourses to look into the role of key management personnel, directors and promoters.
In the interim order, Sebi had said it doubts the authenticity of the documents submitted by J Kumar Infraprojects (JKIL) with regard to PACL Ltd.
PACL, which had raised money from the public in the name of agriculture and real estate businesses, is already under Sebi investigation. The regulator found that PACL mobilised crores of rupees through collective investment schemes.
The latest order comes following a detailed investigation of the matter. Besides, JKIL had also requested Sebi to conclude the proceedings and revoke the direction issued in September last year.
“On the overall examination of various circumstances, I find that, in view of the materials adduced by JKIL, there are not adequate circumstances forming the reasonable grounds to believe that there is misrepresentation of financials,” Sebi Whole-Time Member Madhabi Puri said in her 72-page order.
Source- Economic Times.