The Securities Appellate Tribunal (SAT) has exonerated former PTC India Chairman and Managing Director Rajib Kumar Mishra from all allegations, effectively quashing the Securities and Exchange Board of India’s (SEBI) earlier directive that had barred him from serving as a director in a listed entity.
The SAT ruling declared, “We are of the view that all allegations against the appellant are baseless... The allegations are unsustainable and liable to be quashed. The appellant has suffered the order for about 6 months for no fault.”
PTC India clarified in a stock exchange filing that Rajib K Mishra had ceased to be CMD of PTC India Limited (Company) w.e.f. June 12, 2024.
"Further, the Company’s Board met on December 13, 2024 wherein the contents of SAT’s order dated December 11, 2024 were noted. The Board resolved that Dr. Rajib Kumar Mishra cannot be inducted as a Director or CMD on the Board of PTC India Limited," said the company.
PFS, promoted by PTC India Ltd, is a non-deposit-taking NBFC classified as an infrastructure finance company.
PTC India owns 64.99 percent shares in PFS. PTC, in turn, is owned by Public Sector Undertakings (PSUs) –NTPC Ltd, NHPC Ltd, Power Grid Corporation of India Ltd and Power Finance Corporation Ltd– each holding 4.05 percent in the company.
Rajib Kumar Mishra, and PFS' former MD and CEO Pawan Singh were fined Rs 10 lakh and Rs 25 lakh respectively by the market regulator following its investigation into corporate governance lapses.
Besides slapping a penalty on the two, Sebi has also restrained Singh and Mishra from holding any Board or key managerial personnel position in any listed company or any registered intermediary or associating themselves with any listed entity which intends to raise money from the public. Singh was forced to go on leave in June 2023, following a Reserve Bank of India (RBI) directive, until his retirement.
The order, issued by SEBI, said that Singh had "grossly misused" his position as MD and CEO of PFS and that Mishra had been "acting as a willing accomplice".
Singh was found to have disregarded the Board's recommendations, kept a critical position vacant and informed the Board about a forensic audit done on a bad loan after the passing of two full years.
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