SEBI Probe Leads to Embassy Office Parks CEO Resignation

5 Nov 2024 , 02:48 PM

Since Aravind Maiya, the CEO of Embassy Office Parks REIT, was suspended on SEBI’s order for breaking compliance standards, the company’s shares are probably going to continue to be in the spotlight today.

We are referring to the Securities and Exchange Board of India’s (SEBI) November 4, 2024, interim order/show cause notice. Aravind Maiya will be leaving his position as CEO of Embassy REIT with immediate effect, in accordance with SEBI’s directive, while we examine the order and consider all of our options’, the business stated in an exchange filing.

Maiya will take over as Head of Strategy for Embassy REIT, the business announced.

Following a prior decision by the National Financial Reporting Authority (NFRA) that barred Maiya for ten years for alleged professional misconduct in his previous position as an auditor for Coffee Day Enterprises Ltd (CDEL), this interim order follows that decision. According to NFRA’s conclusions, Maiya’s supervision resulted in serious violations of audit norms and due diligence, which were crucial to a well-known financial scandal involving CDEL.

Sebi questioned Maiya’s compliance with the strict criteria required in the securities market, stating that these errors, according to NFRA, resulted in large investor losses.

Aravind Maiya was found guilty of professional misconduct, according to Sebi, because of his egregious carelessness, lack of due diligence, and failure to report known misstatements or disclose material facts.

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