 "Sebi looking into Tata-Mistry saga; bourses seek clarification")
Markets regulator Sebi has begun looking into the high profile Tata-Mistry case for any possible breach of corporate governance norms and listing regulations at various listed companies of the over USD 100 billion conglomerate.
Stock exchanges sought clarification from many of the group's listed companies on the purported disclosure of 1.18 crore worth writedowns that the replaced Chairman Cyrus Mistry warned the conglomerate of in his e-mail addressed to the Board members of Tata Sons.
"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, wherein he levelled several allegations, including irregularities and 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 replacement of Mistry in less than four years of being made chairman of Tata Sons, the main holding company of the group.
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The price movement and trading volumes for few days prior to the surprise announcement will also be looked into.
The exchanges have asked these companies, including Tata Motors, Tata Steel, Indian Hotels, Tata Teleservices and Tata Power, to provide full details about these issues.
The notices from the stock exchanges followed reports about Cyrus Mistry disclosing possible writedowns to the tune of USD 18 billion faced by the conglomerate.
The exchanges have asked the companies to provide "clarification (or) confirmation" on the matter.
The companies have also been asked to provide explanation regarding the veracity of "event(s), negotiation(s) and article(s)" that have appeared in the media, besides being told to turn in "any information that has not been announced to the exchanges" as required under the Listing Regulations.
The companies were yet to respond to the exchanges.
In an explosive confidential e-mail to the board members of Tata Sons, Mistry said he inherited a debt-laden enterprise saddled with losses. He went further to single out Indian Hotels Co, passenger-vehicle operations of Tata Motors, European operations of Tata Steel and part of the group's power unit and its telecommunications subsidiary as "legacy hotspots".
