Erring companies to be penalised: Sebi

Asserting that “timely action” would be taken against companies violating rules, the Securities and Exchange Board of India (Sebi) chairman UK Sinha on Thursday said the regulator is very alert to ensure protection of investors’ interests.

Asserting that “timely action” would be taken against companies violating rules, the Securities and Exchange Board of India (Sebi) chairman UK Sinha on Thursday said the regulator is very alert to ensure protection of investors’ interests.

His comments came in response to a query on whether Sebi would be initiating action against MCX-SX that rejigged its board on Wednesday amid continuing payment crisis at its group firm National Spot Exchange Ltd (NSEL).

“I would like to assure all of you that Sebi is very alert that interests of investors, who are working on the platform of Sebi regulations, is not compromised and is protected.

“Whatever is required for that purpose, Sebi is alert and we are going to act,” he said.

Speaking on the sidelines of an event organised byindustry body PHD Chamber, Sinha emphasised the regulator wouldtake “timely action” when there are instances of violating Sebi rules.

MCX-SX, promoted by Jignesh Shah-led Financial Technologies, on Wednesday saw the resignations of its two top executives — Shah himself and Joseph Massey.