Sebi issues notices to three Tata Group companies

The Securities and Exchange Board of India (Sebi) has issued a notice to three listed companies of Tata Group seeking explanation on the allegations of possible breach of corporate governance norms and listing regulations. The allegations were made by ousted Tata Group Chairman Cyrus Mistry, said a person with direct knowledge.

The three Tata companies have to respond Sebi within 15 days, said the source. This is the first time the market regulator has intervened in the Ratan Tata-Cyrus Mistry boardroom fight which has now turned into a legal battle as well.

Sources said Sebi sent notices after the audit committees of the respectively listed firms had submitted their reports to Sebi as directed by the regulator and stock exchanges.

The names of the three companies could not be ascertained.

Mistry in his representation to shareholders of Tata Group companies, which had called for extraordinary general meetings to oust him as director, had “alleged breakdown of corporate governance”, while raising questions about various investment decisions during the tenure of his predecessor Ratan Tata in the various group companies.