Shell companies: SAT to hear pleas of 2 more firms on Thursday

New Delhi: The Securities Appellate Tribunal (SAT) will on Thursday hear pleas by Hit Kit Global Solutions and Sanco Industries against trading restrictions imposed on their shares by exchanges on Sebi directions.

The tribunal last week stayed trading curbs on eight companies, including JKumar Infraprojects and Parsvnath Developers, which were among the 331 "suspected shell companies" referred by the government to Sebi.

Trading restrictions were imposed on these companies with effect from August 8, following which many of them approached SAT.

The tribunal has listed the matter of Hit Kit Global Solutions and Sanco Industries for hearing tomorrow, according to the cause list of SAT.

Markets regulator Sebi, on August 7, had asked the stock exchanges to restrict trading in shares of the 331 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.

Many of the companies tagged annual reports and other financials, along with their filings, to press upon the exchanges that they are not shell companies and are in compliance with all regulations.