No disclosure, governance lapses at Tata firms: Sebi

The Securities and Exchange Board of India (Sebi) has closed its investigation of listing disclosure and governance violations at Tata group companies alleged by former chairman Cyrus Mistry, two people with direct knowledge of the matter said. Sebi concluded that the alleged violations were not compliance lapses but commercial decisions taken by the companies, the people said on condition of anonymity.

“On the basis of replies and documents provided by the companies, it appears that the allegations primarily question the commercial decisions and the replies of the companies on the same are acceptable,” one of the two persons said.

An email sent to Sebi requesting comment on Thursday was not answered.

After Mistry was ousted as chairman of Tata Sons Ltd on October 24, he wrote to the board of the group holding company alleging governance lapses, mismanagement, insider trading and Sebi rule violations at some listed group companies.

Following the allegations, Sebi started a three-pronged probe pertaining to the alleged compliance violations, insider trading and independent directors.

In December, Sebi asked the listed companies -- namely Tata Power Ltd, Tata Motors Ltd, Tata Steel Ltd and Indian Hotels Companyb Ltd — via stock exchanges — to reply to the allegations of compliance violations before their audit committees.

“The audit committees in April submitted their reports to Sebi, stating that there is no violation or non-compliance with various