"If companies are 'fooling' by disclosing information to boost sentiment, action will be taken," Tyagi told reporters after the regulator's board meeting here.
Sending out a stern message, Sebi chief Ajay Tyagi on Wednesday said that action will be taken against companies that do not disclose about whistleblower complaints in the garb of finding them as “not material”. “If companies are ‘fooling’ by disclosing information to boost sentiment, action will be taken,” Tyagi told reporters after the regulator’s board meeting here. His reply was to a query on whether the regulator would take a hard look at cases of companies driving up sentiments through disclosures. There have been instances of firms from various sectors, including banks, making big claims amid falling share prices.
In recent times, there have been instances of alleged delays in disclosure of whistleblower complaints and bad loans. “If companies do not disclose a whistleblower complaint in the garb of finding it as ‘not material’, action will be taken,” he said. The markets regulator is probing the issue of whistleblower complaints against Infosys. On November 8, Tyagi said that one needs to ask either Nandan Nilekani or God on the IT major chairman’s assertion about even God can’t change the company’s numbers.
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Under fire in the wake of whistleblower complaints about alleged accounting lapses at the country’s second largest software exporter, Nilekani had said processes at the company are so strong that even God cannot change the numbers. “You have to ask him or you can ask God,” Tyagi had said when asked about his view on Nilekani’s comments. “Investors should draw their own conclusions. Whatever we have to do, we are doing. Whatever is the outcome you would know,” Tyagi had said.