Sebi keeping close watch on Infosys developments

 Infosys has become the latest major corporate to attract regulatory attention for alleged corporate governance lapses being played out in public after Tatas, United Spirits and Ricoh India, among others. Sebi keeping close watch on Infosys developments As IT giant Infosys remains embroiled in differences between its founders and the top management, markets regulator Sebi is keeping a "close watch" on all the developments with a "special focus" to ensure that minority investors' interest is safeguarded. Infosys has become the latest major corporate to attract regulatory attention for alleged corporate governance lapses being played out in public after Tatas,"It is a worrying trend that issues relating to corporate governance and intra-corporate disputes and differences are being played out in the open and through unconfirmed media reports at a number of corporates that have enjoyed bellwether -like status in their sectors.

 "We have been keeping a close watch on developments relating to all such companies with a primary focus to ensure that the minority shareholders' interest is not hurt, while we are also conscious about the interest of institutional investors," he said. The official further said: "These are among the companies that have always been considered to be professionally run and have always attracted significant interest from foreign investors as well and there are concerns that such negative developments may impact India's position as a favoured investment destination." The regulator, he added, is in touch with the stock exchanges to examine the responses submitted by Infosys to the clarificatory notices issued to it and would seek details directly from the company if required thereafter.   As IT giant Infosys remains embroiled in differences between its founders and the top management, markets regulator Sebi is keeping a "close watch" on all the developments with a "special focus" to ensure that minority investors' interest is safeguarded. Infosys has become the latest major corporate to attract regulatory attention for alleged corporate governance lapses being played out in public after Tatas, United Spirits and Ricoh India , among others. "Sebi is keeping a close watch on the developments at Infosys and has asked stock exchanges to seek clarifications on various media reports relating to the company, its founders and top management team," a senior official said.

 "It is a worrying trend that issues relating to corporate governance and intra-corporate disputes and differences are being played out in the open and through unconfirmed media reports at a number of corporates that have enjoyed bellwether -like status in their sectors. "We have been keeping a close watch on developments relating to all such companies with a primary focus to ensure that the minority shareholders' interest is not hurt, while we are also conscious about the interest of institutional investors," he said. The official further said: "These are among the companies that have always been considered to be professionally run and have always attracted significant interest from foreign investors as well and there are concerns that such negative developments may impact India's position as a favoured investment destination." The regulator, he added, is in touch with the stock exchanges to examine the responses submitted by Infosys to the clarificatory notices issued to it and would seek details directly from the company if required thereafter.

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