Nitin Kamath: A major action has been taken against the online stock trading platform Zerodha. The Ministry of Corporate Affairs has taken action against many top officials including the company’s founder Nithin Kamath. The ministry has imposed a fine on all the directors of Zerodha Asset Management for failing to appoint a Chief Financial Officer (CFO) within the stipulated time.
Zerodha AMC was working without a CFO
The Ministry of Corporate Affairs has issued this order on 31 July. According to this, Zerodha AMC has violated Section 203 of the Company Act, 2013. Under this, companies with paid up capital of more than Rs 10 crore are required to make permanent appointment to the post of CFO. But, the company was working without a CFO. The order states that the company regulator has imposed a fine of Rs 5 lakh on Zerodha AMC. Along with this, a fine of Rs 4.08 lakh has also been imposed on the company’s founder Nitin Kamath.
All these officials were fined
Apart from this, a fine of Rs 5 lakh has been imposed on Rajanna Bhuvanesh, Rs 3.45 lakh on Zerodha AMC CEO Vishal Virendra Jain, Rs 3.45 lakh on company secretary Shikha Singh, Rs 1.5 lakh on Nitya Easwaran and Rs 1.5 lakh on Tushar Mahajan.
The CFO position of the company was vacant for 459 days
Zerodha AMC appointed Chintan Bhatt as the CFO of the company in March 2023. Before that, the company was not following the Companies Act. This action has been taken due to this delay. The ministry said in its order that the post of CFO of the company was vacant from 20 December 2021 to 23 March 2023 i.e. 459 days. Zerodha and its officials have been given 90 days to pay the fine. The order states that the directors of the company will pay the fine from their own money.
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