Mumbai, Sept 05: 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 corporates use artificial measures and financial re-engineering to uplift prices of shares and we will deal with them effectively" SEBI chairman G N Bajpai said, addressing a conference on corporate governance (CG) organised by 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 implementation of corporate governance rating, SEBI chairman said corporates 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 upto 25 per cent premium in price, Bajpai said.

Justice Mervin King, author of King report on CG, said the governance was not a morale crusade but an aid to run business effectively.

It also helps corporate raise funds for business at cheap rates, King said. Bureau Report