UPL faces SEBI forensic audit! Anil Singhvi reveals what will happen to company’s stock

UPL faces SEBI forensic audit! Anil Singhvi reveals what will happen to company’s stock

In the wake of allegations of wrongdoing by a whistleblower at UPL hit the headlines again, Securities Exchange Board of India (SEBI) plans to conduct forensic audit of the company’s corporate governance lapses, if any. Zee Business Managing Editor Anil Singhvi explains how this whole new development will unfold and what will be the impact of SEBI’s move on UPL share price.

The matter had come up earlier too and had then been put to rest, but it has revived again. The Market Guru said the matter is same just the department is new, but one thing is sure that it shows that SEBI is very serious about corporate governance issue and plans to find logical solution to the problem.  

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Another thing is that though the matter is old and traces back to 2016-17 and should be resolved soon as indicated by some of its promoters, but for the company the matter is only getting bigger, said the Zee Business Managing Editor.

Talking about its share price, Anil Singhvi said that UPL is no more a mid-cap stock, it is a NIFT share now and such issues of corporate governance raises question mark about its prospects.

This also comes at a time when the company was already in news after auditors of one its subsidiary company resigned.

He said there is not much problem with the UPL stock but these developments shake confidence of investors.  

“It appears chances of fresh fund buying is minimal and only basket buying is possible. Long-term pension fund which invests money in these kind of stocks with 5, 10 and 15 years’ horizon would steer clear of UPL as long as the matter is not settled. Even common investors, who buy such stocks solely because they are part of Nifty, will also be apprehensive of putting their money in this stock,” he added.  

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