A probe by the market regulator revealed that in February this year, eight people led by Bhutada together made a profit of around Rs 13.5 crore by trading in shares of Magma Fincorp during the acquisition by Poonawalla Group. At that time, Shah named in the investigation report was with another firm that had advised the Poonawalla Group in this acquisition.
Responding to TOI’s queries, a spokesperson for KPMG said that the firm takes liberties and non-compliance with its policies and regulations extremely seriously. “The person concerned was not a participant in KPMG during the period when he entered into these transactions in February, 2021 and (it) had no knowledge of these violations till the publication of the SEBI report,” the spokesperson said. “He had joined the firm in May 2021 and ever since this incident has come to our notice, he has left the firm. (KPMG) is committed to ensuring full compliance with all applicable laws and regulations and to ensuring conduct by (its) people is fully consistent with KPMG’s values.
The SEBI report was made public on 15 September. The next day, Bhutada, the managing director of the NBFC, resigned, denying all allegations. Sebi had banned Bhutada, Shah and six other affiliated entities from the market for insider trading. Its preliminary investigation has revealed that these entities together used illegal means and made profits of about Rs 13.5 crore through trades. SEBI had also ordered confiscation of bank accounts of these eight entities.
In an investor call held on Saturday (September 18), Adar Poonawalla According to the lawyers and others (who have reported to him), Bhutada will be free from what he has done, as he has done nothing. He further said that Bhutada has stepped down as per corporate governance standards. We have a strong leadership team available through a healthy mix of new and old team and are well positioned to continue as the business plan continues, he added.
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