Shares of Embassy Office Parks REIT are expected to stay in focus today after the company’s CEO, Aravind Maiya, was suspended based on a directive from SEBI due to non-compliance with regulatory norms.
In a statement to the exchange, the company noted, “We refer to the interim order and show cause notice from the Securities and Exchange Board of India (SEBI) dated November 04, 2024. While we are in the process of reviewing the order and considering all available options, Aravind Maiya will, as per SEBI’s directive, immediately step down from his position as CEO of Embassy REIT.”
The company further announced that Maiya would now take on the role of Head of Strategy for Embassy REIT.
This SEBI order comes after an earlier ruling by the National Financial Reporting Authority (NFRA), which barred Maiya from practicing for a period of 10 years due to alleged professional misconduct during his previous role as an auditor for Coffee Day Enterprises Ltd (CDEL). The NFRA’s findings highlighted serious lapses in audit procedures and diligence under Maiya’s oversight, which played a part in a significant financial scandal linked to CDEL.
According to SEBI, NFRA’s findings indicated that these lapses contributed to considerable investor losses, raising concerns about Maiya’s compliance with securities market standards.
SEBI further stated that Maiya was deemed guilty of professional misconduct, including gross negligence, failure to exercise due diligence, and neglecting to disclose key information or report known misstatements.
Highlighting the severity of NFRA’s conclusions, SEBI underscored that individuals with a record of serious misconduct represent a risk to investor confidence and the integrity of the securities market.
The regulator expressed concern that allowing Maiya to remain CEO of Embassy REIT’s Manager, in light of the NFRA findings, brings his professional integrity, conduct, and competence into question, potentially posing a risk to investors.
