SEBI has received 4,085 complaints on Corporate governance in four years
In the past four and a half years, the capital markets regulator SEBI has received 4,085 complaints alleging that 1,551 companies have violated corporate governance standards. Pankaj Chaudhary, minister of state for finance, stated in a written reply to the Rajya Sabha. Minister stated that of these, 132 complaints were received against firms in the current fiscal year as of July 13; 640 grievances in 2022-23, 809 in 2021-22, 1,151 in 2020-21, and 1,353 in 2019-20. A number of businesses, including Yes Bank, Zee Entertainment Enterprises, Religare Enterprises, Adani Enterprises, Adani Ports And Special Economic Zone, Adani Power, and ACC Ltd. have been accused of violating corporate governance over the past few years.
When there are complaints about violations of corporate governance standards, Sebi raises the issue with the relevant stock exchange, which then contacts the firm in question for input. From there, efforts were taken to address the issues, he continued. In addition, Sebi established a committee in April of last year to strengthen the governance of institutions that support the market infrastructure under the leadership of its former full-time member G Mahalingam. Sebi analyses complaints made against businesses for alleged violations of the rules governing the embezzlement or diversion of funds, serious misstatements in financial accounts, etc. and takes appropriate enforcement action based on the investigation’s findings.
According to the minister, 239 complaints against organisations for alleged insider trading or price manipulation were received through Sebi’s complaints redress system SCORES in the current fiscal year as of July 13. Adani Enterprises, Bharat Heavy Electricals Ltd, Coal India, HDFC Bank, Vedanta, IIFL Securities, and Eros International Media are a few of the organisations against which complaints for alleged insider trading or price manipulation were received in the most recent fiscal year. In addition, the data provided by the ministry shows that 552 complaints were received in 2022–2023, 616 in 2021–2022, 1,130 in 2020–2021, and 1,801 in 2019–20.
Launched in June 2011, the Sebi Complaints Redress System (SCORES) enables investors to submit online complaints to Sebi regarding the securities market against corporations, intermediaries, and market infrastructure institutions.
