Abhay Bhutada hasn't done anything as per lawyers, says Adar Poonawalla

Adar Poonawalla

Poonawalla Fincorp Chairman Adar Poonawalla on Sunday said Abhay Bhutada, who resigned last week from the post of Managing Director on alleged charges of insider trading, "hasn't done anything" as per the lawyers and others who gave him reports.

He said the company is also conducting an independent investigation.

Last week, Bhutada resigned as Managing Director of Poonawalla Fincorp, after capital markets regulator Sebi barred him and seven other entities from securities markets for alleged insider trading in shares of the company.

Poonawalla said he too was shocked when he heard the news (about Sebi barring Bhutada) and the company has also done a preliminary enquiry on its part.

"I have looked at what has happened. We are conducting an independent investigation ourselves also, but very soon this entire matter will be cleared in a positive way. And whoever has done anything wrong will of course face their justice.

"And of course, Abhay will also be cleared of what he has done, because he actually hasn't done anything as per the lawyers and the others who have given me the reports," Poonawalla said during an investor call.

The Pune-based non-banking finance company submitted the audio recording of the investor call through stock exchange filing on Sunday.

When asked if the position of the managing director will be filled, he said, "MD's position is yet to be seen."

He said the company can very well run with the new team and the old team that is there.

"To the unfortunate subject, let me just assure everybody that of course I was also a little shocked when I heard this news. But upon my preliminary investigation...very soon this entire matter will be cleared in a positive way and whoever has done anything wrong will of course face their justice," he added.

However, on the compliance side, he said the first action the company had to take was whether someone is guilty or not of an alleged crime, they have to sit down until the enquiry goes on.

Poonawalla Fincorp has the managerial structure of having a Managing Director and a Chief Executive Officer (CEO).

Vijay Deshwal is the group CEO presently. Deshwal was business head at ICICI Bank in his last role, responsible for its fast growing services. After the Sebi action, Poonawalla Fincorp last week said Deshwal will continue to run the operations of the firm.

Kolkata-based Magma Fincorp was renamed Poonawalla Fincorp a few months back, after the acquisition of the company by the Poonawalla Group which also owns the Serum Institute of India (SII).

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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