The Securities and Exchange Board of India (SEBI) has raised concerns regarding the financial transactions, subsidiary operations and proposed main board migration of Kore Digital Ltd.
The regulator’s examination identified an additional ₹26.42 crore in revenue allegedly recorded through Kashmree Infra Projects Pvt. Ltd. during FY 2024–25. SEBI also questioned the nature of Kashmree’s business activities and the authenticity of its registered office premises.
Preferential Issue Proceeds Under Scrutiny
SEBI has examined the utilisation of approximately ₹440.5 crore raised by Kore Digital through a preferential issue completed in March 2024.
According to the regulator’s prima facie findings, a significant portion of the funds was allegedly transferred to Kashmree Infra Projects Pvt. Ltd. and SD Squeeze Manpower Pvt. Ltd., which were identified in the interim order as purportedly non-genuine entities.
The findings have also placed the company’s statutory auditors under regulatory examination. SEBI has shared the interim order with the National Financial Reporting Authority (NFRA) for consideration of any appropriate action concerning the auditors.
Proposed NSE Main Board Migration Restricted
SEBI’s investigation also covered Kore Digital’s proposal to shift from the SME platform to the NSE main board.
The regulator observed that three subsidiaries made a material contribution to the company’s reported revenue. Without revenue attributed to these entities, Kore Digital’s standalone revenue would reportedly have remained below the prescribed migration threshold during certain periods.
In view of these observations, SEBI has directed that the proposed migration cannot proceed without regulatory clearance.
Forensic Audit and Disclosure Requirements
While the investigation continues, SEBI has decided to appoint a forensic auditor to review Kore Digital’s books of accounts covering the period from its listing through March 31, 2026.
The company has additionally been instructed to ensure accurate and fair disclosures concerning its financial statements, related-party transactions and other information required under applicable listing regulations.
Kore Digital and the other parties named in the proceedings have been provided an opportunity to submit their responses and request a personal hearing. CASansaar
Regulatory Status: The matters described are based on SEBI’s prima facie findings and interim directions. The allegations and proceedings remain subject to the applicable regulatory process.