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The Securities and Exchange Board of India today said it is keeping a close tab on the share price movement of Infosys, which saw its first non-promoter CEO Vishal Sikka quitting the company last week amid differences with its founders.
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 yesterday despite buyback announcement by the company.
The country’s second largest software services firm had on Saturday announced that its board has approved a share buyback offer of up to Rs 13,000 crore.
“We are keeping a watch on Infosys share price,” SEBI Chairman Ajay Tyagi said here.
Linking e-KYC with Aadhaar
He said that 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.
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 timelimit, the account would be suspended till the Aadhaar details are submitted by the client.
Last week, the BSE had asked trading and clearing members to submit report on their 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.
Shell companies
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.''
He also said that the panel on corporate governance is expected to submit its report by the end of September.
In a bid improve the standards of corporate governance of listed companies, SEBI has set up a committee in June under the chairmanship of Uday Kotak, chief of Kotak Mahindra Bank.
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