The Securities and Exchange Board of India (Sebi) has barred passive telecom infrastructure provider Kore Digital Ltd and three top executives from raising funds through public offerings, citing strong evidence of financial manipulation and misleading information. The three executives were also prohibited from purchasing, selling or otherwise dealing in Kore Digital securities, directly or indirectly, until further notice.
In the ex-parte interim order issued on Thursday, Kore Digital was named along with managing director Ravindra Doshi, chief executive officer Chaitanya Doshi and chief financial officer Kashmira Doshi. Kore and others receiving notice have 21 days from receipt of the order to file their responses and request an in-person hearing.
Sebi has ordered a forensic audit of Kore’s books from their listing date to March 31, 2026 and will conduct a detailed investigation. For this purpose, Sebi has directed the company to fairly and fairly disclose its financial statements, transactions with related parties and other information required under the listing rules. A copy of the order regarding possible action against the auditors has been sent to the National Financial Reporting Authority.
The order also prevents NSE has barred Kore from migrating from its SME platform NSE Emerge to the main board without Sebi’s permission. The regulator stressed that its findings are prima facie and that a full investigation will be carried out independently.
Sebi’s allegations
Sebi’s preliminary audit revealed that Kore’s books and financial statements were allegedly manipulated, resulting in false and misleading financial results between FY24 and FY26.
Sebi said the three subsidiaries acquired in FY25 and their abolished subsidiaries were found to be fake. ₹In FY25 and FY26, revenues of Rs 541.3 crore were allegedly misrepresented, which was about 73% of the company’s total revenue during the period.
Sebi also noted transactions involving Kashvee, which she called an unreliable entity, and raised concerns about the work of auditors associated with subsidiaries. He also argued that individual income was inflated due to ₹31.49 crore through transactions involving NECL, Vodafone and Airtel as well as ₹26.42 crores through Kashvee Infra Projects.
The regulator said a significant portion of the proceeds from Kore’s March 2024 preference share issue were diverted primarily to Kashvee Infra Projects and SD Square Manpower, both of which it found prima facie to be fake or not genuine. Sebi said site visits revealed that some subsidiaries and abolished subsidiaries did not exist at their declared addresses. It also said false corporate announcements contributed to a significant increase in Kore’s share price.
