Market regulator SEBI has asked the exchanges to seek more information from the suspected shell companies for verification of their credentials/fundamentals. Officials at the stock exchanges have been told to check the legitimacy of these companies and submit a report as early as possible.

In a circular, the markets regulator has advised companies to produce an auditor’s certificate with various details — company’s income tax returns for the past three years, any pending disputes with the tax department, the status of their compliance with the Companies Act.

The 331 companies on the SEBI’s list will also have to give a description of their business models and their bank statements (with active/dormant status) of the past one year. They will also have to inform the exchanges and SEBI in case a company has defaulted on any payments to any bank/financial institution.

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