Keeping close watch on Infosys share price, says Sebi’s chief

Following resignation of its chief executive officer Vishal Sikka last week, shares of Infosys had crashed nearly 10 per cent on Friday

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Commenting on corporate governance, Tyagi said the 21-member committee on corporate governance, led by Uday Kotak, will submit its report by September-end.

The Securities and Exchange Board of India (Sebi) is keeping a close watch on the share price movement of Infosys Ltd, the market regulator’s chairman Ajay Tyagi said on Tuesday. “We are keeping a watch on Infosys share prices,” Tyagi told reporters after the meeting of the Financial Stability and Development Council in the finance ministry.

Following resignation of its chief executive officer Vishal Sikka last week, shares of Infosys had crashed nearly 10 per cent on Friday, resulting in loss of Rs 22,500 crore of the market capitalisation of the company. On Saturday, the company had announced share buyback worth Rs 13,000 crore.

Commenting on corporate governance, Tyagi said the 21-member committee on corporate governance, led by Uday Kotak, will submit its report by September-end. The Sebi had in June set up a 21-member panel led by Kotak Mahindra Bank chairman Uday Kotak to advise it on issues relating to corporate governance in Indian firms.

On the issue of action against 331 alleged shell companies, Tyagi said that Sebi will continue to examine violations of securities laws and rules. “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 said.

Tyagi added the regulator will stick to the December deadline for linking Aadhaar with Know Your Customer norms for share trading accounts. Sebi has asked existing clients to submit the Aadhaar numbers to their brokers by December 31, while new clients must furnish the details within six months of starting the Demat account.

Finance minister Arun Jaitley on Tuesday chaired the 17th meeting of FSDC to take stock of challenges facing the economy, underscoring the need for keeping a constant vigil on them.