Various listed companies as well as mutual funds have come under the scanner of Sebi for failing to make adequate disclosures about their debt exposure to investors.
Various listed companies as well as mutual funds have come under the scanner of Sebi for failing to make adequate disclosures about their debt exposure to investors.
The possible window dressing of debt woes came to the notice of the capital market regulator after some companies did not make proper disclosures to stock exchanges even as their credit ratings were downgraded by some rating agencies. The latest move comes close on the heels of Sebi probing certain fund houses for their excessive exposure to debt papers of auto component maker Amtek Auto, which is grappling with financial troubles.
Besides, Amtek’s listed subsidiary Castex Technologies too is under the lens amid share price rigging allegations.
Sources said Sebi is looking at various listed firms, mostly in the mid-cap segment, that are facing debt turmoil and not making proper disclosures as required under the regulations.
Many entities are believed to have kept investors in the dark about their financial woes despite some of their credit ratings getting downgraded, they added.
According to sources, some mutual fund houses are also being probed to ascertain whether they failed to furnish information to investors about their exposure to such debt crisis-hit companies.
