Sebi fines Axis Trustee Services Rs 10 lakhs
Sebi has fined Axis Trustee Services ₹10 lakh. The penalty is for not promptly disclosing a ruling against former REIT executive Aravind Maiya. The National Financial Reporting Authority found Maiya guilty of misconduct. This information was cruci...
By ET Bureau |
IANS
The regulator held that Axis Trustee failed to ensure timely disclosure and did not exercise independent judgment on whether Maiya met the "fit and proper" criteria mandated under rules.
Mumbai: The Securities and Exchange Board of India (Sebi) has imposed a penalty of ₹10 lakh on Axis Trustee Services for failing to disclose a case linked to former REIT executive Aravind Maiya.
Sebi's order arises from an August 2024 ruling by the National Financial Reporting Authority(NFRA), which found Maiya guilty of professional misconduct, imposed a monetary penalty, and barred him from audit roles for 10 years. At the time, Maiya was serving as CEO of the manager of Embassy Office Parks REIT.
The Sebi held that the NFRA order was material information that had a direct bearing on the integrity and suitability of the CEO, and therefore, required prompt disclosure to unitholders and stock exchanges. However, the disclosure was delayed by over seven weeks and was made after regulatory intervention.
The regulator held that Axis Trustee failed to ensure timely disclosure and did not exercise independent judgment on whether Maiya met the "fit and proper" criteria mandated under rules.
Sebi's order arises from an August 2024 ruling by the National Financial Reporting Authority(NFRA), which found Maiya guilty of professional misconduct, imposed a monetary penalty, and barred him from audit roles for 10 years. At the time, Maiya was serving as CEO of the manager of Embassy Office Parks REIT.
The Sebi held that the NFRA order was material information that had a direct bearing on the integrity and suitability of the CEO, and therefore, required prompt disclosure to unitholders and stock exchanges. However, the disclosure was delayed by over seven weeks and was made after regulatory intervention.
The regulator held that Axis Trustee failed to ensure timely disclosure and did not exercise independent judgment on whether Maiya met the "fit and proper" criteria mandated under rules.
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