The Securities and Exchange Board of India has taken interim action against telecom infrastructure company Kore Digital Ltd after its preliminary examination found prima facie indications of alleged financial manipulation and misleading disclosures.
SEBI has barred the company and three senior officials from accessing the securities market to raise money from the public. The three officials have also been restrained from buying, selling or otherwise dealing in Kore Digital securities, directly or indirectly, until further orders.
₹541.3 Crore Revenue Under Scanner
At the centre of SEBI’s examination is approximately ₹541.3 crore in consolidated revenue reported during FY2024-25 and FY2025-26.
According to the regulator’s prima facie findings, the company’s consolidated financial statements were allegedly misstated by around ₹541.3 crore during the two financial years. The amount represented roughly 73% of its total revenue over the period.
SEBI’s examination raised questions about companies acquired by Kore Digital and their step-down subsidiaries.
The regulator’s findings included concerns over whether some of these entities were genuine. Site visits also reportedly failed to establish the presence of certain entities at their stated addresses.
These entities accounted for a significant portion of the revenue subsequently reflected in Kore Digital’s consolidated financial statements.
Standalone Revenue Also Examined
The regulator also examined transactions that allegedly inflated Kore Digital’s standalone revenue.
Transactions involving Navayuga Engineering Company Limited, Vodafone and Bharti Airtel were linked to an alleged revenue misstatement of around ₹31.49 crore across FY24 and FY25.
Another ₹26.42 crore in revenue recorded through transactions involving Kashvee Infra Projects during FY25 also came under scrutiny.
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Preferential Issue Funds Under Probe
SEBI has also examined how money raised through Kore Digital’s preferential issue in March 2024 was utilised.
According to the regulator’s preliminary findings, a substantial portion of the ₹40.05 crore raised through the issue was allegedly diverted to entities that SEBI considered prima facie non-genuine.
The actual business activities of the entities and the movement of the funds are part of the continuing investigation.
Forensic Audit Ordered
SEBI will appoint a forensic auditor to examine Kore Digital’s books from the date of its listing through March 31, 2026.
The company has also been directed to ensure true and fair disclosure of its financial statements, related-party transactions and other information required under listing regulations.
A copy of the interim order has been forwarded to the National Financial Reporting Authority for possible examination of matters concerning the company’s auditors.
Mainboard Migration Blocked
SEBI has also directed the National Stock Exchange not to allow Kore Digital to migrate from the NSE Emerge SME platform to the main board without regulatory clearance.
The restriction comes as the regulator continues its detailed examination of the company’s financial affairs.
Three Senior Officials Face Restrictions
The restrictions cover Managing Director Ravindra Doshi, Chief Executive Officer Chaitanya Doshi and Chief Financial Officer Kashmira Doshi.
The three have been restrained from buying, selling or otherwise dealing in Kore Digital securities, directly or indirectly, until further orders.
The company and the concerned parties have an opportunity to respond to the interim order and seek a personal hearing.
The420 View
The ₹541.3 crore figure represents a prima facie revenue misstatement identified by SEBI, not a final determination of wrongdoing. The forensic audit and continuing investigation will be critical in establishing the underlying transactions, the use of funds and the roles of the entities and individuals involved.
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