Markets regulator Sebi is keeping an eye on the share price movement of Infosys, which saw its first non-promoter CEO Vishal Sikka quitting last week amid differences with its founders, media reports said.
Shares of Infosys plunged by nearly 10 per cent on Friday wiping out Rs 22,519 crore from its market valuation, after Sikka’s resignation. It fell further by over 5 per cent on Monday despite buyback announcement by the company, reported PTI.
Sharp decline in Infosys share prices wiped out Rs 34,000 crore of investors’ wealth in last two days, the report said.
Snapping two day continuous fall, shares of Infosys closed 0.42 per cent up at Rs 877.15 per unit on the BSE, it added.
The country’s second largest software services firm on Saturday announced that its board approved a share buyback offer of up to Rs 13,000 crore.
“We are keeping a watch on Infosys share prices,” Sebi Chairman Ajay Tyagi said here today.
Amid allegation of corporate governance lapses, Infosys co-chairman Ravi Venkatesan met Finance Minister Arun Jaitley.
Venkatesan met the minister and is believed to have apprised him of the developments at Infosys as also the steps being taken to keep the shareholders informed, sources said.
The Sebi chief said the regulator will stick to its December deadline for linking Aadhaar with e-KYC for trading accounts.
The move is aimed at curbing money laundering and tax evasion through stock markets, media reports said.
All demat account holders are required to link their accounts with Aadhaar by December 31, 2017. In case of failure to submit the documents within the prescribed time limit, the account would be suspended till the Aadhaar details are submitted by the client, report PTI.
Last week, the BSE asked trading and clearing members to report preparedness for furnishing Aadhaar details of their clients. While trading members have to submit report on their preparedness by August 23, clearing members and custodians have to do the same by August 25.
In compliance with the amended Prevention of Money Laundering norms, banks have already sought Aadhaar details from their customers.
When asked about more action against shell companies, Tyagi said, “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”.
Earlier this month, Sebi directed bourses to initiate action against 331 suspected shell companies that are listed and these scrips will not be available for trading this month.
The regulator’s directive reportedly came after the corporate affairs ministry shared a list of 331 listed companies that are suspected to be shell entities and could even face “compulsory delisting”.
So far, around 10 companies have won relief from the Securities Appellate Tribunal.
He also reportedly said that panel on corporate governance is expected to submit its report by the end of September.
In a bid improve standards of corporate governance of listed companies, Sebi set up a committee in June under the chairmanship of Uday Kotak, chief of Kotak Mahindra Bank, reported PTI.
