J Kumar Infra Shares Surge After SEBI Clean-Chit To It In PACL Scam Case
Workers prepare reinforcing steel in a construction site at the East Kidwai Nagar General Pool Residential Accommodation (GPRA) Redevelopment Project, redeveloped by National Buildings Construction Corp. (Photographer: Ruhani Kaur/Bloomberg)

J Kumar Infra Shares Surge After SEBI Clean-Chit To It In PACL Scam Case

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Shares of J Kumar Infraprojects Ltd. on Wednesday surged the most since Dec. 18, 2018, after the markets regulator said there are no reasonable grounds to believe misinterpretation of financials at the urban infra firm.

J Kumar Infra was one of the 331 suspected shell companies identified by Securities and Exchange Board of India.

SEBI has revoked its interim directions issued in September 2018, directing the stock exchanges to appoint an independent auditor to conduct forensic audit of J Kumar Infra.

SEBI had also asked the bourses to look into the role of key management personnel, directors and promoters as it had doubts on the authenticity of documents submitted by J Kumar Infra with regard to the PACL scam.

PACL, which had raised money from the public in the name of agriculture and real estate businesses, was found by SEBI to have collected these funds through illegal collective investment schemes over 18 years.

The latest order comes following a detailed investigation by SEBI in the PACL case.

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