With reference to Kore Digital and SEBI's regulatory action, consider the following statements: 1. The company falsely inflated revenues from acquired subsidiaries. 2. SEBI allowed Kore Digital to migrate to the NSE main board immediately. 3. Kore Digital misstated its financial statements by ₹541.3 crore. Which of the statements given above is/are correct?

Kore Digital barred from raising funds; financial statements misstated by ₹541.3 crore

GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims· 18 September 2026

Corporate governance and regulatory oversight: a GS3 case study on market integrity and investor protection.

Why in news

SEBI restrained Kore Digital and its promoters from raising funds and trading shares after discovering a ₹541.3 crore misstatement in financial statements.

Background

SEBI identified that Kore Digital falsely inflated revenues from acquired subsidiaries. A forensic audit is scheduled to examine the company's books for the period between June 2023 and March 31, 2026.

Facts for Prelims

FactKore Digital misstated financial statements by ₹541.3 crore
FactNSE: Directed not to allow Kore Digital's migration to the main board without regulatory clearance

Prelims practice question

With reference to Kore Digital and SEBI's regulatory action, consider the following statements:

The company falsely inflated revenues from acquired subsidiaries.
SEBI allowed Kore Digital to migrate to the NSE main board immediately.
Kore Digital misstated its financial statements by ₹541.3 crore.

Which of the statements given above is/are correct?

(a)2 only
(b)1 and 3 only
(c)2 and 3 only
(d)1, 2 and 3

Show answer

Answer: (b) 1 and 3 only — Statements 1 and 3 are correct. Statement 2 is incorrect: NSE directed not to allow migration without regulatory clearance.

For Mains

Q. Discuss the role of SEBI in ensuring corporate transparency and investor protection against financial fraud in the capital markets.

Dimensions to cover in your answer

Audit oversight: Limitations in independent auditing firms detecting revenue inflation in subsidiary acquisitions
Regulatory enforcement: Balancing swift punitive actions with the integrity of the NSE main board migration process

Keywords: Corporate Governance · Forensic Audit · Market Integrity · Regulatory Compliance · Investor Protection

Read the full news →Report a mistake in this note Source: Economic Times ↗Also: GS2 · Transparency, accountability & RTI

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