Shares of TARC Limited extended their losses on Wednesday, falling another 4.23% to ₹179.98 on the NSE, following Tuesday’s sharp decline of 10%. The stock has faced selling pressure after the Securities and Exchange Board of India (SEBI) initiated a forensic audit to review the company’s financial statements for the fiscal years 2020-21 to 2022-23.
SEBI’s Concerns
The market regulator raised concerns over TARC’s financial disclosures and business transactions, suggesting potential practices that could harm investor interests and the broader securities market.
TARC’s Response
In an exchange filing, TARC Limited reassured stakeholders, pledging full cooperation with SEBI’s audit process. The company emphasized its commitment to corporate governance, transparency, and integrity.
“This matter will be addressed thoroughly and efficiently, with no impact on financial, operational, or other strategic objectives. We remain confident that this will not affect our strong growth trajectory or the long-term value we aim to deliver to shareholders,” TARC said.
The company also highlighted that the audit could strengthen shareholder confidence by reinforcing its focus on transparency and accountability.
Stock performance snapshot
- 1 day: -3.49%
- 5 days: -14.46%
- 1 month: -10.64%
- 6 months: -6.89%
- Year to date: +31.09%
Investor Sentiment
Despite TARC’s reassurances, investor sentiment remains negative. The stock, which hit its 10% lower circuit on Tuesday, extended its losses on Wednesday, signaling concerns among market participants over the audit process.
TARC has promised to provide further updates as the audit progresses.
