SEBI recently banned trading by 331 companies on the grounds that these might be shell companies. Many businesses with active dealing were part of this list. “I think it was unfair to not give these companies a chance to explain themselves. SEBI (Securities and Exchange Board of India) acted in haste. Bankruptcy and insolvency proceedings may have been filed against them but they are not necessarily shell companies.” said a key finance ministery official.
J Kumar Infraprojects Ltd, Prakash Industries Ltd and Parsvnath Developers Ltd had approached the Securities Appellate Tribunal against their inclusion in the list of suspected shell firms.