India’s Securities and Exchange Board issued an interim order against Kore Digital on 17 September. Reuters and the Economic Times reported that the regulator barred the company from raising public funds and blocked a move from the NSE’s small-enterprise platform to the mainboard. SEBI also ordered a forensic audit. The measures arise from allegations that remain subject to further regulatory process.
Kore Digital listed on the NSE’s SME platform on 14 June 2023 and became eligible to seek mainboard migration three years later. SEBI alleged that three subsidiaries acquired from late 2024 supplied roughly three-quarters of subsequent revenue. The regulator said site visits found no evidence of operations at stated addresses. Reuters reported that the alleged issues included inflated revenue and manipulated financial statements.
REGULATOR QUESTIONS REVENUE QUALITY
The Economic Times said SEBI alleged a 5.413 billion rupee revenue misstatement across the 2025 and 2026 financial years. The amount represented about 73% of reported revenue in that period, according to the report. These are regulatory allegations rather than final findings.
SEBI also restrained managing director Ravindra Doshi, chief executive Chaitanya Doshi and finance chief Kashmira Doshi from trading in the company’s shares, Reuters reported. The forensic audit is intended to test the accounts and related transactions. The interim order does not by itself establish final liability.
INTERIM ACTION SHIFTS FOCUS TO AUDIT
Kore Digital shares fell 10% to 78.75 rupees on 18 September, the Economic Times reported. The fall followed publication of the regulatory action; neither cited report established why individual investors sold. The company’s ability to pursue a mainboard transfer is now constrained while the process continues.
The next material developments will be the forensic auditor’s findings and any response filed by the company or affected executives. Investors will also watch whether SEBI modifies the interim restraints after considering submissions. Until then, the alleged misstatement and related conduct should continue to be described as unproven.