SEBI Restrains Kore Digital and Top Executives Over Alleged ₹541 Crore Revenue Misstatement

The Securities and Exchange Board of India (SEBI) has passed an interim ex-parte order against SME-listed telecom infrastructure company Kore Digital Ltd and three of its top executives over alleged financial manipulation, diversion of funds, and the misstatement of approximately ₹541.3 crore in revenue.

The regulator has restrained Managing Director Ravindra Doshi, Chief Executive Officer Chaitanya Doshi, and Chief Financial Officer Kashmira Doshi from buying, selling, or dealing in Kore Digital securities, directly or indirectly, until further orders. Additionally, SEBI has barred the company and the three executives from accessing the capital markets to raise funds from the public.

Following the regulatory action, shares of Kore Digital tumbled 10% to hit the lower circuit limit at ₹78.75 on Friday morning on the NSE Emerge platform.

Key Findings of SEBI Probe

SEBI’s preliminary examination examined the company's records from April 1, 2023, to March 31, 2026. The investigation highlighted significant anomalies tied to the acquisition and revenue recognition of three subsidiaries: Franken Telecom, Wolter Infratech, and KDL Realinfra.

According to the order, SEBI highlighted the following discrepancies:

• Revenue Misstatement: Consolidated revenue was prima facie misstated by around ₹541.3 crore across FY25 and FY26, representing nearly 73% of the company's total revenue during that timeframe.
• Questionable Acquisitions: The three subsidiaries were incorporated just months before Kore Digital acquired them in FY25, shared the same registered address, and had minimal to no regulatory filing history.
• Absence of Operations: Regulatory site inspections revealed no evidence of physical business operations at the declared addresses of the acquired entities or their step-down subsidiaries.
• Fund Diversion: The probe found prima facie evidence pointing to suspicious accounting entries and the diversion of proceeds raised through preferential share allotments.

Kore Digital's reported revenue from operations had climbed sharply from ₹21.27 crore in FY23 to ₹408 crore in FY26, driven largely by revenues consolidated from these subsidiaries, which accounted for roughly 75% of overall turnover.

Regulatory Directives and Governance Fall-out

SEBI has directed the National Stock Exchange (NSE) not to allow Kore Digital to migrate from the SME platform, NSE Emerge, to the mainboard until regulatory clearance is granted. Kore Digital had originally listed on NSE Emerge in June 2023.

The regulator will appoint an independent forensic auditor to inspect Kore Digital’s books of accounts covering the period from its listing date through March 31, 2026. SEBI has also forwarded a copy of the interim order to the National Financial Reporting Authority (NFRA) for potential scrutiny and action regarding statutory auditor conduct.

The company and the named executives have been given 21 days from the receipt of the order to submit their written replies and request an opportunity for a personal hearing.

Tags: SEBI Kore Digital NSE Emerge NFRA Ravindra Doshi Telecom Infrastructure