The Securities Appellate Tribunal (SAT) has quashed a Sebi order that restrained former PTC India Chairman and Managing Director (CMD) Rajib Kumar Mishra from being a director in a listed entity for six months in a matter pertaining to alleged corporate governance lapses. The latest ruling came after Mishra approached SAT against Sebi’s order on the grounds that he was ‘not in charge’ and responsible for the conduct of the business of the company.
Quashing the Sebi’s order, SAT, in an order passed on Wednesday, said all the allegations against the appellant are baseless and “the appellant has suffered the order for about six months for no fault”.
The regulator, in its order on June 12, prohibited Mishra from “holding any position of director or key managerial personnel in any listed company or any intermediary registered with Sebi or associating himself with any listed public company or a public company which intends to raise money from the public or any intermediary registered with Sebi, in any capacity, for a period of six months” for corporate governance lapses at PFS.
Also, the Securities and Exchange Board of India (Sebi) had slapped a fine of Rs 10 lakh on him.
Following Sebi’s direction, Mishra ceased to be the chairman and non-executive director of PTC India Financial Services Ltd (PFS) and CMD of PTC India Ltd.
PFS, promoted by PTC India Ltd, is a non-deposit-taking NBFC classified as an infrastructure finance company.
Apart from Mishra, the watchdog had prohibited the company’s former MD and CEO Pawan Singh from holding the post of director in any listed company for two years and also imposed a penalty of Rs 25 lakh on him.
In its order, Sebi had noted that Pawan Singh had “grossly misused” his position as the MD and CEO of PFS to prevent Ratnesh from joining as whole-time director (finance) and chief financial officer (CFO), which was approved by the company’s board. Further, Mishra was acting “as a willing accomplice of Singh”.
“The role of Noticee 2 (Mishra) in flouting the norms of corporate governance in this matter is well established,” Sebi had stated in its order.
The Sebi’s order was stayed by SAT in June.
