Tribunal Stays SEBI Order On Ex-PTC India CMD Rajib Kumar Mishra

The Securities Appellate Tribunal has stayed a Securities and Exchange Board of India order that restrained Rajib Kumar Mishra, a former PTC India chairman and managing director, from being a director of a listed entity for six months in a matter pertaining to corporate governance lapses.

Following the order passed by the market regulator on June 12, Mishra ceased to be the chairman and non-executive director of PTC India Financial Services Ltd. and CMD of PTC India Ltd.

PFS, promoted by PTC India Ltd., is a non-deposit-taking non-bank lender classified as an infrastructure financier.

The market regulator, through its order, prohibited Mishra from being a director of a listed entity for corporate governance lapses at PFS.

Mishra was barred 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 that intends to raise money from the public or any intermediary registered with SEBI, in any capacity, for a period of six months,"  according to the order.

SEBI also imposed a penalty of Rs 10 lakh on Mishra.

Mishra, however, appealed to SAT to have a stay on the order, citing that the loan accounts were handled by an executive of the company.

He also said he was a non-executive chairman and a nominee director on the board of PFS and didn't have any authority or delegation of power as per the Articles of Association.

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 a deposit of 50% of the penalty amount by the appellant with the Sebi within two weeks."

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 imposed a penalty of Rs 25 lakh on him.

In its order, SEBI 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 said in its order.

(With Inputs From PTI)