SEBI to look into Mistry’s allegations

Our Bureau Mumbai | Updated on January 16, 2018 Published on October 26, 2016

Markets regulator SEBI and the stock exchanges are investigating the dispute between Tata Sons and Cyrus Mistry over the latter’s ouster from Chairmanship of Tata group board.

The BSE and the NSE have asked Tata Communications, Tata Power, Tata Teleservices, Tata Steel and Indian Hotels to explain the allegations made by Mistry in his letter to the Tata Sons board.

“Cyrus Mistry has alleged possible breach of corporate governance norms within various Tata Group companies. There is also mention of possible insider trading.

“We want to know the details,” said a top SEBI official on conditions of anonymity.

The BSE has sent an official notice seeking explanation on the ₹1,18,000 crore write-off claimed by Mistry in his letter.

Other issues

Mistry in his letter to the board has raised several issues, including the role of Ratan Tata as an alternate centre of power after the company’s articles of association were amended.

“ I write this letter to the board to emphasise the total lack of corporate governance and to point out the failure on the part of the directors to discharge the fiduciary duty owed to stakeholders of Tata Sons and the Group companies.

“All this does not augur well for the future of the Group,” Mistry said.

Published on October 26, 2016
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