Poonawalla Fincorp reinstates Abhay Bhutada as managing director

Independent probe clears him of insider trading charges

Abhay Bhutada has been reinstated as managing director of Poonawalla Fincorp Ltd after its board found that an independent probe did not find evidence of him sharing any Unpublished Price Sensitive information with a third party.

On September 16, 2021 Bhutada had resigned from the post after the Securities and Exchange Board of India (Sebi) barred him from accessing the securities market for allegedly insider trading in shares of PFL.

PFL, erstwhile Magma Fincorp Ltd, in filing with BSE said while there was no regulatory requirement for him to step down, he had voluntarily stepped down to comply with the high governance standards of the Poonawalla group. Also, he stepped down to ensure an unbiased independent probe into the matter.

The board considered the report of the comprehensive independent probe initiated by the company involving experts, which has also been shared with the regulators.

The board has noted the finding that there was no evidence of him sharing any UPSI with third parties in violation of SEBI regulations, the company said.

In view of the above, the board has decided to reinstate him effective 12 February 12, 2022 for a five-year period. He will be leading the organisation towards achieving its objective of creating value for all stakeholders.

Bhutada is a qualified Chartered Accountant and a seasoned finance professional with over 15 years of diversified experience in the domain of commercial, housing and retail lending.