SAT Quells SEBI’s Order Against Former PTC India CMD Rajib Kumar Mishra
SAT Quells SEBI’s Order Against Former PTC India CMD Rajib Kumar Mishra
Deems the allegations of corporate governance lapses against him baseless
The Securities Appellate Tribunal (SAT) has quashed the order of the Securities and Exchange Board of India (SEBI) that restrained former PTC India Chairman and Managing Director (CMD) Rajib Kumar Mishra from being a director in a listed entity for six months on the alleged corporate governance lapses.
Mishra had approached SAT against SEBI's order stating that he was 'not in charge' and responsible for the company’s business.
Thus, quashing SEBI's order, the tribunal ruled that all allegations against the appellant were baseless and "the appellant has suffered the order for about six months for no fault."
Earlier, in its 12 June order, the market regulator prohibited Mishra from "holding a position of director or key managerial personnel in any listed company or an intermediary registered with SEBI or associating 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 six months.”
Mishra was also slapped with a Rs.10 lakh fine.
Following the directions, he ceased to be the chairman and non-executive director of PTC India Financial Services Ltd (PFS) and CMD of PTC India Ltd.
Promoted by PTC India, PFS is a non-deposit-taking NBFC classified as an infrastructure finance company.
Other than Mishra, the watchdog prohibited the company's former MD and CEO Pawan Singh from holding the post of director in any listed company for two years and directed to pay Rs 25 lakh penalty.
SEBI had noted that Singh ‘misused’ his position as the MD and CEO to prevent Ratnesh from joining as a whole-time director (finance) and chief financial officer (CFO), which was approved by the company's board. It also observed that Mishra was Singh’s co-conspirator.
The market regulator stated, “The role of Noticee 2 (Mishra) in flouting the corporate governance norms is well established.”
However, in June, the appellate tribunal upheld SEBI’s order.
