The Securities and Exchange Board of India (Sebi) is expected to examine the issues of corporate governance raised by Cyrus Mistry in his letter to the board members.
Stock market regulator Sebi is keeping a close look at the developments following the sacking of Cyrus P Mistry as the chairman of Tata Sons on Monday and is also contemplating taking up the corporate governance issues raised by Mistry in his letter to the board members.
A source aware of the developments told The Financial Express that, “Sebi will have to get into the picture”.
This is quite logical, but is obviously coming in a bit late as the market regulator has been stressing a lot about corporate governance in the recent past.
It has been clear since Monday that the matter may snowball into a major corporate governance issue with unprecedented sacking of Mistry.
Mistry in his letter to the Tata Sons board members and trusts has pointed out that the move is unparalleled in the annals of corporate history adding that he was shocked beyond words terming the board proceedings as invalid and illegal.
According to The Economic Times, he has alleged that he had not been allowed to manage the affairs of the group.
Mistry has termed the action, “total lack of corporate governance and a failure of the directors to discharge their fiduciary duty to stakeholders of Tata Sons and the group companies”.
It appears this is what has prompted consideration of necessary action by Sebi, clearly suggesting that the Tata-Mistry battle will be fought all over before it gets over.