Sebi, bourses demand answers
Tata firms have seen huge erosion in m-cap leading to suspicion of norms violations
New Delhi, Oct. 26: Markets regulator Sebi has begun looking into the high profile TataMistry case for any possible breach of corporate governance norms and listing regulations at various listed companies of the over $100 billion conglomerate.
Besides, stock exchanges, late this evening, sought clarification from many of the group's listed companies on the purported disclosure by ousted Chairman Cyrus Mistry about `1.18 lakh crore possible writedown at the group firms.
“We (Sebi) are taking note of each and every development and will act immediately on any hint of possible violation of corporate governance and listing norms or any other regulation under our jurisdiction,” a senior official said.
The Securities and Exchange Board of India (Sebi) is looking into the alleged disclosure made in the purported letter written by Mistry to Tata Sons' board members including about financial and other irregularities as also lapses on the corporate governance front, sources said.
The stock exchanges and the regulator are also keeping a close watch on the price movement and trading activities of over two dozen listed companies of Tata group, which have seen an erosion in value in last two trading sessions after the surprise ouster of Mistry in less than four years of being made chairman of Tata Sons.
The price movement and trading volumes for few days prior to the surprise announcement will also be looked into.
The exchanges have asked these multiple Tata companies, to provide full details about these issues.