Mallya steps down from Sanofi board as Sebi tightens rules

His resignation from the board comes in the wake of Sebi's new rules which bar wilful defaulters from holding board positions

Vijay Mallya is stepping down as the chairperson of Sanofi India after nearly 33 years at helm with tax authorities and stock markets regulator tightening the screws on him in Kingfisher loan default case.

Mallya has been the director of the company (then known as Hoechst Pharmaceuticals) since 1973 and its chairperson since its 1983. On Wednesday Sanofi announced that Mallya is not seeking a re-election as a director on the board at the company's ensuing annual general body meeting.

Mallya's resignation from Sanofi board comes in the wake of Securities and Exchange Board of India's new rules which bar wilful defaulters from holding board positions.  Sebi Chairman U K Sinha on March 12 had said the new rules on restraining wilful defaulters will come into effect after they get notified.

“After the notification, all the persons would stand disqualified from all positions at listed companies,” Sinha had said, but refused to comment on any individual.

Sebi has also barried them from raising public funds and taking control of listed firms and holding board positions.

Mallya is also on the board of Bayer Cropsciences, United Breweries, United Breweries Holdings and Kingfisher Airlines.

“I have been privileged to preside over the board of the company and to have participated in the phenomenal growth and prosperity over such an extraordinarily long period of time,” Mallya said in a statement.