 "Big companies too will face action for governance lapses: U K Sinha")
Listed firms cannot escape action for corporate governance lapses just because they are "big", outgoing Securities and Exchange Board of India (Sebi) chief U K Sinha said on Monday amid controversies surrounding some top-notch firms such as Infosys and Tatas.
In recent times, many listed companies have come under the regulatory scanner for alleged violations of corporate governance norms.
"When first time the Sebi implemented minimum public shareholding rules and then more regulations came in, there was very strong environment for corporate governance. I would not like to comment on any specific company or group but would like to say that if the Sebi receives any material or evidence, we will examine it. Whether it's a big entity or small entity, we will investigate it," Sinha said.
He was responding to a question about corporate governance issues and whether there was need to take a re-look at the norms.
Infosys has become the latest major corporate to attract regulatory attention for alleged corporate governance lapses being played out in public after the Tatas, United Spirits and Ricoh India, among others.
Addressing reporters at his last press conference as Sebi Chairman, Sinha also said that around 94 lakh demat accounts have been opened in 2016-17 and efforts are on to expand the investor base in the country.