SEBI revokes interim order against Poonwalla Fincorp MD Abhay Bhutada

Market regulator SEBI on Friday revoked an interim order passed against Abhay Bhutada, Managing Director of Poonawalla Fincorp (formerly Magma Fincorp) with immediate effect.

In an interim order dated September 15, 2021, the market regulator had barred Bhutada and seven other entities from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever, over allegedly passing unpublished price sensitive information (UPSI) and insider trading.

"Pursuant to the SEBI’s detailed investigation in the matter, it was found that Abhay Bhutada had not communicated Unpublished Price Sensitive Information (UPSI), and hence the interim and confirmatory orders stand revoked vide order dated 3 June 2022," the company informed the stock exchanges.

Earlier, SEBI had conducted a detailed  investigation in the  matter, to ascertain  the violations of securities laws, if any.

However, as regards other entities, proceedings are ongoing, SEBI mentioned in its order. 

In February, Poonawalla Fincorp Limited had reinstated Abhay Bhutada as its Managing Director. The firm has explained that while there was no regulatory requirement for Bhutada to step down,  he had voluntarily decided to step down for complying with the high governance standards of the Poonawalla group and to ensure an unbiased independent probe into the matter. 

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