The Securities and Exchange Board of India (Sebi) will keep a close watch on the share price movement of information technology bellwether Infosys, the market regulator's chairman Ajay Tyagi said on Tuesday. This comes in the backdrop of high profile board and management exits from the company.
Tyagi also said that SEBI will continue examining securities law violations by listed firms even after identifying 331 shell companies which it has marked for delisting.
"Wherever there is a violation of securities law, they have to be investigated and looked into irrespective of whether it is shell or whatever name you give them. One does not wait for any reference from anywhere," Tyagi said. He was speaking to reporters after the meeting of the Financial Stability and Development Council (FSDC) in New Delhi.
When asked for further comments on Infosys, Tyagi said that corporate governance remained a big problem in India and that a panel formed in June to recommend better corporate governance standards will submit its report by September-end.
The 21-member panel is chaired by Uday Kotak, executive vice-chairman and managing director of Kotak Mahindra Bank. It has representatives from corporate India, stock exchanges, legal firms, Sebi and proxy advisory firms.
Tyagi also said that the markets regulator is sticking to the December 31, 2017 deadline for Aadhaar-linked Know Your Customer (KYC) norms for stock trading.
The FSDC meeting, held in the Finance Ministry, was chaired by Finance Minister Arun Jaitley. It was attended by Reserve Bank of India governor Urjit Patel, Finance Secretary Ashok Lavasa, Tyagi, IRDA chairman T S Vijayan, PFRDA chairman Hemant Contractor, and other senior central government officials.
"The Council took note of the progress of Financial Sector Assessment Program for India, jointly conducted by the International Monetary Fund and the World Bank. Council directed that the assessment report should be finalized by the end of this calendar year," said an official statement released after the meeting.
The FSDC also discussed the planned Central KYC Registry (CKYCR) system and discussed the issues and suggestions with regards to its operationalization. "The Council also deliberated on strengthening the regulation of the Credit Rating Agencies (CRAs)," the statement said.