The Telegraph
Since 1st March, 1999
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Sebi asks firms not to fiddle with figures

Mumbai, Sept 5 (PTI): The Securities and Exchange Board of India today warned listed companies against ramping up prices of scrips by manipulating financial figures and said it would come down heavily on wrongdoers.

“Some companies use artificial measures and financial re-engineering to uplift prices of shares and we will deal with them effectively,” Sebi chairman G.. Bajpai said, addressing a conference on corporate governance organised by the Indian Merchants Chamber here today.

The only route available for companies to see better valuation of their stock was through effective management of corporate affairs, Bajpai said.

On the implementation of corporate governance (CG) rating, Sebi chairman said companies should get themselves rated to provide information on record of management, value creation and wealth sharing with stakeholders. The regulator does not wish to make CG rating mandatory. In fact, “market sentiment” should reward good governance, he added.

The International Monetary Fund study has shown that companies with good CG command up to 25 per cent premium in price, Bajpai said.

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