SEBI’s interim order of 17 September concerns suspected misstatement of financial results and misuse of money raised from investors at Kore Digital. Its preliminary findings include alleged misstatement of Rs. 541.3 crore across FY2024–25 and FY2025–26, approximately 73% of reported revenue for the period. The concerns involve consolidated accounts, which combine the parent company’s results with those of its subsidiaries. SEBI questioned whether certain subsidiaries were genuine, the audit evidence supporting their results and differences between bank statements and accounting records.
The regulator also alleged misuse of Rs. 40.05 crore raised through a preferential issue, a securities issue to selected investors. Interim measures include restrictions on fundraising and specified executives dealing in Kore Digital securities, corrective disclosures and a forensic audit. The matter was referred to the National Financial Reporting Authority (NFRA) for examination of the auditors’ role.
Sources: SEBI interim order | Moneycontrol report
