Trust, confidence severely impacted by IL&FS default, says Sebi chairman

Episode has highlighted issues arising out of complex corporate subsidiary structures

The default by Infrastructure Leasing & Financial Services (IL&FS) has "severely” impacted the trust and confidence of investors, said Ajay Tyagi, chairman, Securities and Exchange Board of India (Sebi).

Speaking at the conference organised by rating agency Crisil, he said “Let me briefly touch upon the issue of ‘trust’ and how this “trust" and consequently investors’ confidence has been severely impacted due to developments in the recent months, particularly as a result of default by a large entity.”

“One of the issues that this episode has brought out is the interconnectedness arising as a result of complex corporate subsidiary structures