February 25, 2024

Regulator’s high table to company boardroom: India Inc’s prize pickings

On the off chance that India Inc parades resigned government workers on its sheets as chiefs, controllers are its prize catch.

Recorder of Companies and Ministry of Corporate Affairs records explored by The Indian Express show that in the course of the most recent 11 years, somewhere around six heads of top administrative bodies, and two senior partners, took directorships with privately owned businesses inside their administrative space bringing up issues of legitimacy and irreconcilable situation. Now and again, even the standard on chilling time frame was given the pass by.

Among top controllers, markets screen Securities and Exchange Board of India (SEBI) has a one-year duration before its administrator or entire time part can acknowledge other work after residency. The Reserve Bank of India additionally has a chilling time of one year for its Governor and Deputy Governors.Anti-trust guard dog Competition Commission of India’s individuals can’t acknowledge, for a very long time after residency, work connected to an undertaking that has been essential for procedures before it.

Concerning Insurance Regulatory and Development Authority of India (IRDAI), the executive or entire time individuals can’t acknowledge work under Central or State governments or any organization in the protection area for a time of two years after residency.

Presently, think about an illustrative assemblage of top controllers, and partners, who have joined sheets of organizations connected to their administrative area:

T S Vijayan: Head of IRDAI from February 21, 2013 to February 20, 2018. Took up a few board positions inside the two-year cooling time frame: Muthoot Microfin (May 15, 2018 till date); Nippon Life India Trustee (June 29, 2018 to Jan 28, 2020); Shriram Properties (Nov 2018 till date).

Muthoot Microfin is an auxiliary of Muthoot Fincorp, which is in protection broking through its auxiliary Muthoot Risk Insurance and Broking Services. Nippon Life India Trustee, earlier known as Reliance Capital Trustee Co Ltd, is an auxiliary of Nippon Life Insurance Company (Japan). Nippon Life Insurance has a 49 percent stake in Reliance Nippon Life Insurance Company.Also joined the sheets of Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance on April 1, 2020, yet abandoned the seats on July 17, 2020.

In August 2020, Vijayan was given a show-cause notice by the Center to clarify why he joined the leading group of Yes Bank in December 2018, supposedly without taking endorsement — he was with Yes Bank till March 5, 2020.Vijayan said: “None of the organizations I joined are in the protection area.”

Ashok Chawla: Headed CCI from January 2011 to January 7, 2016; resigned as Finance Secretary in January 2011. Inside two months of leaving CCI, joined Yes Bank load up as non chief on March 5, 2016; after seven months, became bank executive. Surrendered in November 2018 in the wake of being named in a CBI chargesheet on supposed debasement accusations.

In April 2018, joined Jet Airways board. In November 2015, under Chawla, the CCI had fined three aircrafts, including Jet, for repudiation of against trust guidelines. Fly Airways was punished Rs 151.69 crore, the most elevated of the three. In March 2018, on request, the CCI diminished Jet’s punishment to Rs 39.8 crore — punishments for the other two were likewise sliced.

Joined the National Stock Exchange board on March 28, 2016, and later named executive.

Was ready of Reliance Nippon Life Insurance Company from March-Sep 2018. On February 3, 2016, close to 30 days after he resigned from CCI, the controller permitted Nippon Life to build its shareholding in Reliance Life Insurance to 49 percent.

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