Sebi bars PTC’s CMD, ex-PFS MD from holding board seats

New Delhi: Market regulator Sebi on Wednesday barred Pawan Singh, the former MD and CEO of PTC Financial Services (PFS), from holding any board position in a listed company or associating himself with any public company that intends to raise funds in six months. Rajib Kumar Mishra, the NBFC‘s current non-executive chairman and also the CMD of PTC India, faces the same curbs, but for six months.Both the executives have also been slapped with penalties.
In its 111-page order, Sebi found Singh – who was asked to go on leave – to have “grossly misused” his position as the MD and CEO of PFS to prevent an NTPC executive, Ratnesh, from joining as the CFO of the company, with Mishra acting as a willing accomplice.
Three independent directors on the board of PFS – Santosh B Nayar, Thomas Mathews and Kamlesh Shivji Vikamsey – had quit, citing multiple lapses. Singh made a delayed disclosure of the Forensic Audit Report on loans to NSL Nagapatnam Power and Infratech to the board of PFS – two years after completion of the forensic audit.
Also, there was a considerable delay on the part of Singh in providing information in respect of the loan account to the committee of independent directors, formed by the board to examine non-disclosure-related issues of the loan account. Further, despite clear direction from the PFS board to report about the loan account as suspected fraud, there was a significant delay, Sebi noted.