Sebi cracks whip on 20 cos for Clause 49 non-compliance

In a first of a kind move on Clause 49, markets regulator SEBI has initiated adjudication proceedings against 20 companies for non-compliance.

5 of these companies are public sector companies & the rest belong to the private sector.

The names are not released as yet - and it is likely that the regulator might not really release the names of these companies. That could be read as an indication that these are not small of insignificant companies that the regulator is talking about.

We have been told that proceedings against the 5 public sector companies have been initiated for non-compliance with the provisions related to the composition of their boards.

The private sector players have been pulled p for various reasons - some for complete non-compliance and others for not complying with multiple provisions.

An adjudicating officer will be appointed to look into it. The case will be heard and only if these companies are found non compliant by the officer-that means if Sebi's charges against these companies are upheld - a monetary penalty will be imposed.