Subramanian Swamy alleges differential treatment by market regulator Sebi

Seeks the Sebi chair's intervention and probe in specific cases of violations

Politician and economist Subramanian Swamy has alleged inconsistency in implementing minimum public shareholding (MPS) norms and differential treatment to promoters of certain businesses by the Securities and Exchange Board of India (Sebi). 

In a letter to the current Sebi chairperson Madhabi Puri Buch, Swamy has sought her intervention to probe certain cases of violations of securities laws including MPS and disclosures of promoter shareholding.

In a tweet on Thursday evening, Swamy shared a screenshot of his letter to the markets regulator.

Swamy, in the letter dated December 5, alleged that the capital markets regulator took no action against certain companies and promoter groups for violation of MPS regulations while the voting rights of the promoters of 105 listed companies were frozen in an order issued on June 4, 2013.

Sebi norms require listed companies to maintain at least 25 per cent public shareholding.

“Sebi has settled past violations but has failed to compel the (specific) companies and promoters to take the required curative actions and/or comply with the disclosure requirements which are provided in the regulations and which Sebi has enforced in similar cases,” said Swamy in the letter seen by Business Standard.

Citing certain cases of settlement, Swamy alleged that Sebi has gone against its own policy of not settling continuous defaults and has acted contrary to the interest of public shareholders.