The Finance Ministry on Wednesday said that trading in 12 suspected shell companies was expected to resume in a week, ET Now reported. These 12 firms are among the 331 suspected shell companies against whom the Securities and Exchange Board of India had sought action.

The companies identified will soon be issued a Sebi notification, and will be given time to explain their position, an unidentified official told BloombergQuint.

The ministry said that it has taken action against some companies whose shares were trading a lot more during the demonetisation drive. A few of these suspected shell companies have also violated income tax rules, said the ministry.

On Monday, the market regulator had sent a circular to stock exchanges, asking them to stop trading in these 331 suspected shell companies for a month. The Sebi asked the Bombay Stock Exchange, the National Stock Exchange and the Metropolitan Stock Exchange to keep the 331 scrips under surveillance. It said the firms would be subjected to independent audits, and their financial information could be examined to provide evidence in court if necessary.