"Abhay [Bhutada] will be clear of what he's done, because he actually hasn't done anything, as far as the lawyers and others (who have) given me the reports", said Adar Poonawalla, Chairman, Poonawalla Fincorp Limited giving a clean chit to the managing director in an investor call held on Saturday, September 18.
Poonawalla said that the company is carrying out an independent investigation into recent events leading to the exit of Managing Director, Abhay Bhutada. "Abhay has stepped down as per corporate governance standards and this event does not have anything on the company and it’s going to be business as usual," he stated.
Poonawalla stated his reasons for venturing into the financial services segment are two-fold, viz: to address the credit gap that exists as economy continues to grow at a healthy rate and secondly to do something for the masses and help them.
"We are in volume business and so retail lending was the choice. We did it in a step-wise manner, first with a privately-owned company and then moving to a listed company." He further said that the firm has a strong leadership team available through a healthy mix of new and old team and are well positioned to continue as per the business plan.
Sebi bars Bhutada, 7 others
On September 16, Securities and Exchange Board of India (SEBI) barred Abhay Bhutada, Managing Director of Adar Poonawalla-owned Poonawalla Fincorp’s from the securities market for alleged insider trading.
Along with Bhatuda, seven others have been barred and Sebi has impounded an amount of Rs 13.58 crore for wrongful gains.
The regulator Securities and Exchange Board of India (SEBI) has barred Abhay Bhutada, Managing Director of Adar Poonawalla-owned Poonawalla Fincorp’s from the securities market for alleged insider trading.
Along with Bhatuda, seven others have been barred and Sebi has impounded an amount of Rs 13.58 crore for wrongful gains.
Shares of Poonawalla Fincorp continued to decline on Friday and further tumbled 5 per cent to its lowest trading limit after its Managing Director Abhay Bhutada stepped down from the company following Sebi action.
The stock declined 5 per cent to its lower circuit of Rs 163.55 on the BSE.
On September 20, at 2.30 PM, Poonawalla Fincorp continued to slide and was down Rs 8.80 or 4.97 percent at Rs 168.15. On the NSE, it was down Rs 8.80 or 4.99 percent at Rs 167.65.
