Shadow over Sun Pharma

Firm's response to governance allegations inadequate

A series of allegations against India’s largest drug manufacturer, Sun Pharmaceutical Industries, has led to its stock price slipping over 10 per cent in the past two trading sessions. The allegations are wide-ranging and from multiple sources. It has been reported, for example, that the Securities and Exchange Board of India (Sebi) is likely to re-examine insider trading allegations and related accusations pertaining to fundraising abroad by the company and its promoters. This apparently follows the submission of relevant documents to the market regulator by a whistleblower. An analyst note had also flagged issues about the company’s corporate governance, which