SAT stays SEBI order on former PTC India CMD Rajib Kumar Mishra

New Delhi: The Securities Appellate Tribunal (SAT) has stayed 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 corporate governance lapses.

Following the order passed by markets regulator SEBI on June 12, 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.

Giving interim relief to Mishra SAT in its order on Friday, said, "The operation of the impugned order shall remain till the next date of hearing subject to deposit of 50 per cent of the penalty amount by the appellant with the SEBI within two weeks.

The markets regulator, through its order, 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, Securities and Exchange Board of India (SEBI) slapped a fine of Rs 10 lakh on him.

Apart from 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 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 regulator said.

"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.

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