Sebi queries Tata firms on Mistry, Wadia claims

Sebi queries Tata firms on Mistry, Wadia claims

 The Sebi has sought detailed explanations from some listed Tata firms on alleged violations of corporate governance and insider trading norms flagged by ousted directors Cyrus Mistry and Nusli Wadia.

The fresh queries have been raised by the capital markets watchdog following receipt of letters from Mistry, who was ousted as chairman of the over $100-billion conglomerate, as also from Wadia, who has also been removed as independent director from various Tata firms.

The regulator has asked some listed Tata firms to provide specific details and explanation on allegations levelled by Mistry and Wadia, even as an ongoing scrutiny is underway, which was initiated soon after a bitter boardroom battle broke out at the conglomerate following ouster of the former chairman, a senior official said.

However, the ongoing scrutiny, including of the details submitted by various listed Tata companies in reply to clarifications sought through stock exchanges, has not shown so far any serious violation of prescribed listing rules, he said, while adding it is yet to be completed and nothing can be said conclusively about the outcome at the moment.

Incidentally, last week, Sebi came out with a detailed guidance note for evaluation of boards of listed companies, including the role of independent directors, in order to provide more clarity for stakeholders.

Sebi has been keeping a close watch on the developments related to the group and has already carried out a preliminary inquiry into the allegations.

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