Sebi’s order arises from an August 2024 ruling by the National Financial Reporting Authority(NFRA), which found Maiya guilty of professional misconduct, imposed a monetary penalty, and barred him from audit roles for 10 years. At the time, Maiya was serving as CEO of the manager of Embassy Office Parks REIT.
The Sebi held that the NFRA order was material information that had a direct bearing on the integrity and suitability of the CEO, and therefore, required prompt disclosure to unitholders and stock exchanges. However, the disclosure was delayed by over seven weeks and was made after regulatory intervention.
The regulator held that Axis Trustee failed to ensure timely disclosure and did not exercise independent judgment on whether Maiya met the “fit and proper” criteria mandated under rules.
