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 $1
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 $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 Rs 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.
Tata Firms lost over Rs 21,000 crore in M-cap Key Tata Group firms lost over Rs10,000 crore for the second day on Wednesday, extending the total erosion in market capitalisation to more than Rs 21,000 crore following Cyrus Mistry’s ouster as Tata Group chairman.
These firms had lost about Rs 10,700 crore on Tuesday.
Shares of Tata Motors dipped 4.27 per cent, Tata Steel slumped 4.01 per cent, Tata Power lost 2.06 per cent and TCS fell by 0.07 per cent on BSE on Wednesday.
Besides, Tata Metaliks slipped 3.85 per cent, Tata Elxsi dropped 3.15 per cent, Tata Global Beverages (3.10 pc), Tata Chemicals (2.83 pc), Tata Communications (2.68 pc), Tata Sponge Iron (0.57 pc) and Tata Coffee (0.42 pc).
Tata Group overall commands market capitalisation of over $125 billion (close to Rs 8.5 lakh crore), with software giant TCS alone accounting for Rs 4,72,301.73 crore.
In the stock market, the BSE benchmark Sensex too fell by 254.91 points to end at 27,836.51. Mistry’s family firm Shapoorji Pallonji Group has 18.4 per cent in Tata Sons — the holding firm of the group companies.
In the surprise development, the board of Tata Sons, where 66 per cent shares are held by philanthropic trusts endowed by members of the Tata family, ousted Chairman Mistry, saying it was acting “for the long-term interest” of the firm.
