As per Mr Poonawalla, he was shocked when he first heard the news about SEBI barring Bhutada and seven others from the securities market for alleged insider trading of the shares of the Company (Poonawalla Fincorp earlier knows as Magma Fincorp).
Following that, Bhutada stepped down from the post of MD on September 16, 2021, denying the allegations.
As per Mr Poonwalla –
- Detailed internal investigations are ongoing on the matter. Based on initial enquiry reports and the lawyers, Abhay may not have done anything wrong.
- However, the first action in terms of corporate governance was that the person, irrespective of him being guilty or not, has to step down until the inquiry is completed. He further added that it has not been decided what will be done with the MD’s position.
- Currently, Vijay Deshwal, Group CEO is running the operations of the company.
- It’s otherwise business as usual for the Company and there is no impact. SEBI enquiry is limited to the insider trading charge and there is no impact on the operations of the Company.
Abhay Bhutada has been reinstated as MD of Poonawalla Fincorp, after its board found that an independent probe did not find evidence of him sharing any Unpublished Price Sensitive information with a third party.
He has been reinstated for a period of five years effective February 12, 2022.
Sebi has revoked the order as it didn’t find any wrongdoing in the detailed investigation.