New Delhi: Sebi on Wednesday barred India Financial Services Ltd (PFS) acting chairman Rajib Kumar Mishra from holding the post of director in any listed company for six months and fined him Rs 10 lakh for corporate governance lapses. Fined.
Mishra is also the Chairman and Managing Director of India Limited, the promoter company of PFS.
Also, the company's former MD and CEO Pawan Singh has been debarred from holding any position of director or key managerial personnel in any listed firm or any intermediary registered with SEBI for a period of two years. Additionally, the regulator imposed a fine of Rs 25 lakh on Singh.
Market regulator SEBI, in its order, found that Pawan Singh had "grossly abused" his position as MD and CEO of PFS by preventing Ratnesh from joining as whole-time director (finance) and chief financial officer (CFO). Which was approved by SEBI.Board of the company. Moreover, Mishra, who is the non-executive chairman of PFS since November 8, 2021, has been found to have acted as a willing accomplice of Singh.
"The role of Noticee 2 (Mishra) in violating corporate governance norms in this case is well established," Sebi said.
On Pawan Singh, the regulator said the MD and CEO of a company, though occupying high positions in the management hierarchy, are bound to follow the decisions of the company's board and cannot exercise their power unilaterally.
"However, in this case, the MD and CEO used all means to frustrate the decision of the PFS board of appointment of Ratnesh, thereby leaving a significant vacancy in the company," Sebi said in its 111-page order.
Singh delayed disclosure of the forensic audit report (FAR) on the loan given to NSL Nagapattinam Power and Infratech to the board of PFS, two years after the forensic audit was completed.It was disclosed to the board for the first time in 2020, two years after the completion of FAR-2018.
Further, there was significant delay on the part of Singh in providing information regarding the loan account to the Committee of Independent Directors constituted by the Board to investigate non-disclosure-related issues of the loan account.
Further, even after clear instructions from the PFS Board to report the loan account as suspected fraud, there was a significant delay in reporting the matter to the RBI, Sebi said.
During January 19-21, 2022, three independent directors of India Financial Services Limited – Santosh B. Nair, Thomas Mathews and Kamlesh Shivaji Vikamse - in view of receipt of resignation letters in respect of which several allegations were made. SEBI examined the issues raised by them for the period April 2021 to December 2022 on corporate governance issues in PFS.In their resignation letter, these independent directors had made several allegations of violation of corporate governance norms at PFS.
Mishra is also the Chairman and Managing Director of India Limited, the promoter company of PFS.
Also, the company's former MD and CEO Pawan Singh has been debarred from holding any position of director or key managerial personnel in any listed firm or any intermediary registered with SEBI for a period of two years. Additionally, the regulator imposed a fine of Rs 25 lakh on Singh.
Market regulator SEBI, in its order, found that Pawan Singh had "grossly abused" his position as MD and CEO of PFS by preventing Ratnesh from joining as whole-time director (finance) and chief financial officer (CFO). Which was approved by SEBI.Board of the company. Moreover, Mishra, who is the non-executive chairman of PFS since November 8, 2021, has been found to have acted as a willing accomplice of Singh.
"The role of Noticee 2 (Mishra) in violating corporate governance norms in this case is well established," Sebi said.
On Pawan Singh, the regulator said the MD and CEO of a company, though occupying high positions in the management hierarchy, are bound to follow the decisions of the company's board and cannot exercise their power unilaterally.
"However, in this case, the MD and CEO used all means to frustrate the decision of the PFS board of appointment of Ratnesh, thereby leaving a significant vacancy in the company," Sebi said in its 111-page order.
Singh delayed disclosure of the forensic audit report (FAR) on the loan given to NSL Nagapattinam Power and Infratech to the board of PFS, two years after the forensic audit was completed.It was disclosed to the board for the first time in 2020, two years after the completion of FAR-2018.
Further, there was significant delay on the part of Singh in providing information regarding the loan account to the Committee of Independent Directors constituted by the Board to investigate non-disclosure-related issues of the loan account.
Further, even after clear instructions from the PFS Board to report the loan account as suspected fraud, there was a significant delay in reporting the matter to the RBI, Sebi said.
During January 19-21, 2022, three independent directors of India Financial Services Limited – Santosh B. Nair, Thomas Mathews and Kamlesh Shivaji Vikamse - in view of receipt of resignation letters in respect of which several allegations were made. SEBI examined the issues raised by them for the period April 2021 to December 2022 on corporate governance issues in PFS.In their resignation letter, these independent directors had made several allegations of violation of corporate governance norms at PFS.
