A large number of individuals and entities, including independent directors, top management personnel, rating agencies and auditors formerly associated with crisis-hit IL&FS may soon face action by capital market regulator Sebi for their role in the alleged fraud at the group. Sebi has been conducting an in-depth investigation into the role of several entities and individuals, including for suspected violation of disclosure and corporate governance norms, and many of them would soon face stringent penal action for hurting the interest of minority shareholders and the overall capital markets with their fraudulent actions, senior officials said.
Officials said the regulator is also looking into the role of some listed borrowers, who were allegedly given multiple fresh loans despite their earlier defaults. The Sebi probe had begun soon after the crisis came to light at IL&FS group last year, following huge defaults by various entities which together had a debt burden of over Rs 90,000 crore.