Home » Blog » News » List Of Shell Companies Declared By SEBI

List Of Shell Companies Declared By SEBI

List Of Shell Companies Declared By SEBI

Today SEBI has posted a list of 331 suspected shell companies and after the news, the market started correcting and closed below 10000 marks. In fact, this 10000 mark is now acting as a serious resistance for the Nifty index. In this post, I have posted a list of shell companies declared by SEBI.

The Ministry of Corporate Affairs, Government of India has built this list of shell companies declared by SEBI. Many of these companies are already listed on the stock exchanges. Some of the names of the listed company are Gallant Ispat, Prakash Industries, REI Agro, Pincon Spirit, J Kumar Infra, etc. There are companies which have already shown a good run up on the price front.

What Is A Shell Company?

  • The client’s money sits in an account, often in Switzerland.
  • Formally this account is not held by a human being but an offshore company.
  • Its address is a PO Box that can serve the address of several companies at a time.
  • The client is not named among the directors, rather nominees are supplied by a law firm.
  • Sometimes the offshore company is owned by another offshore company.
  • That company will, in turn, sign a declaration of trust or power of attorney granting control to the client.
  • The only people knowing the actual entity of the client are the bank, the law firm and the registration agent and sometimes even any one or more of them are in dark too.

So we can understand shell companies are nothing but fictitious and fraud companies. These companies show crores of turnover on paper while actual turnover is actually zero and there are no employees in the companies. So if these companies get listed on the stock exchanges investors investing in their stocks can be seriously affected.

So SEBI has traced around 5 lacs of such companies and posted a list of 331 companies initially. For the list of shell companies declared by SEBI click here. The companies in this list who are listed in stock exchanges will be restricted in trading activities. These shares can be traded only once every month on the first Monday.
Disclaimer: We received this list of shell companies from the internet.

0 0 votes
Article Rating
Notify of

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inline Feedbacks
View all comments