The Securities Appellate Tribunal (SAT) has temporarily halted the enforcement of a Securities and Exchange Board of India (SEBI) order penalizing Rajib Kumar Mishra, former non-executive director of PTC India Financial Services (PFS), according to a ruling dated June 21.
SEBI had fined Mishra and former MD/CEO Pawan Singh for corporate governance lapses. Mishra, also chairman of PTC India, was penalized Rs 10 lakh and barred from holding board positions in listed companies for six months. Singh was fined Rs 25 lakh and barred for two years.
Mishra contested SEBI’s order at SAT, which granted SEBI four weeks to respond and allowed Mishra two weeks for a rebuttal.
The tribunal stayed SEBI’s order until the next hearing, provided Mishra deposits 50% of the penalty with SEBI within two weeks from June 21. The next hearing is scheduled for August 2.
PFS, a non-banking financial arm of PTC India, faced scrutiny following the resignation of independent directors and subsequent investigations by SEBI and the Reserve Bank of India (RBI). In June 2023, Registrar of Companies found PFS and Singh in violation of The Companies Act, 2013. Singh went on leave as per RBI’s directive.
Despite regulatory scrutiny, Mishra continued in leadership roles until SEBI’s recent action. PTC India appointed Manoj Jhawar as CMD in June 2023 amid ongoing regulatory reviews.
PTC India, majority-owned by Public Sector Undertakings (PSUs), holds 64.99% of PFS shares.
