Sebi orders forensic audit against Parsvnath Developers
Markets regulator Sebi on wednesday ordered a forensic audit of Parsvnath Developers Ltd (PDL), which figured in the list of 331 “suspected shell companies,” on prima facie suspicion of misrepresentation of business by the firm with regard to certain transactions.
In an interim order, the Securities and Exchange Board of India (Sebi) said, “the present enquiry is restricted only to contracts/ sub-contracts undertaken by PDL during the period 2009-10, 2010-11 and 2011-12.”
The regulator directed the exchange to appoint an independent forensic auditor to verify any misrepresentation including of financials or business by PDL in the context of the transactions during the financial years 2009-10, 2010-11 and 2011-12, including the role of key managerial personnel, directors and promoters in them.
Also, the auditor has to verify any misuse of the books of accounts and funds including facilitation of accommodation entries or compromise of minority shareholder interest in the context of the transactions during the three financial years.