The Securities and Exchange Board of India 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 directions are interim and remain in force until further orders.
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.
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 auditor will examine the company’s books from its June 2023 listing to 31 March 2026, the Economic Times reported. SEBI said its findings were prima facie and that a detailed investigation was required.
INTERIM ACTION SHIFTS FOCUS TO AUDIT
Kore Digital shares fell 10% to 78.75 rupees on 18 September, the Economic Times reported. SEBI directed the NSE not to allow Kore Digital to migrate to the mainboard until it obtains SEBI clearance.
SEBI also forwarded the order to the National Financial Reporting Authority for appropriate action, if any, against auditors JN Gupta & Co, CA Nikhil Gupta and Bose & Chakraborty.