Abhay Bhutada, former MD, Poonawalla Fincorp
Poonawalla Fincorp Limited on September 16 announced that the Managing Director of the firm Abhay Bhutada has resigned from the Board of the Company with immediate effect.
Following his resignation, Bhutada ceases to be a Director and key managerial personnel of the company. The Board of Directors of the Company has accepted Bhutada’s resignation, the firm said in a regulatory filing.
Adding to details, Poonawalla Fincorp said that the trading window under the company’s “code of conduct for prohibition of insider trading" -- will remain closed for dealing in securities of the company for the designated persons and their immediate relatives defined in the code with immediate effect from September 16, 2021, to September 18, 2021, due to Bhutada's resignation.
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Earlier in the day, market regulator Securities and Exchange Board of India (SEBI) barred Abhay Bhutada, and seven others from accessing the securities market after alleged insider trading.
SEBI, in its 46-page interim order, said the eight entities had made total wrongful gains of Rs 13.58 crore through insider trading in shares of Magma Fincorp (now Poonawalla Fincorp) around the time it was acquired by Rising Sun Holdings (RSHPL).
"All the Entities, viz: Entity nos. 1 to 8 are restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders," the market regulator said in the interim ex-parte order.
Reports show RSHPL had acquired a controlling stake in the NBFC through an equity infusion of Rs 3,456 crore earlier this year, where former Bhutada was Managing Director and CEO of Poonawalla Finance, which is a subsidiary of RSHPL.
Allegations were put on Bhutada for passing on unpublished price-sensitive information (UPSI) to some connected entities, SEBI's interim order said.