Embassy REIT's CEO steps Down Following SEBI's Order

                Embassy REIT (Real Estate Investment Trust) shares lost 2.7 per cent in Tuesday's trade and registered an intraday low of Rs 392 per share on NSE. The weakness in the stock can 
be attributed to CEO Aravind Maiya's resignation post market regulator Securities Exchange Board of India's (Sebi) direction of suspension for failing to meet its “fit & proper” criteria 
for top executives.
 
Around 11:53 AM, Embassy REIT shares were down 2 per cent at Rs 395 per share on NSE. In comparison, the NSE Nifty was down 0.55 per cent at 23,862.6. The market 
capitalisation of the company stood at Rs 37,441.8 crore. The 52-week high of the stock was at Rs 405 per share on NSE and 52-week low of the stock was at Rs 284 per share.
 
 The largest real estate investment trust (REIT) in India, Embassy REIT, today, announced that the company's CEO Aravind Maiya has resigned effective immediately.
 
"While we are reviewing the order and evaluating all options, in compliance with SEBI’s directive, effective immediately, Aravind Maiya will be stepping down as CEO of Embassy REIT. 
He will assume the role of Head of Strategy for Embassy REIT," the filing read.
 
It added: The REIT’s Board, and the Management team will oversee all its operations and capital allocation to ensure that normal business is not compromised in any manner 
whatsoever, while evaluating the most appropriate approach for the interim CEO position. 
 
Maiya’s departure follows a directive from the Sebi, which ordered the management of Embassy REIT to suspend him in an interim capacity. Sebi has also mandated that an interim 
CEO be appointed without delay.
 
This regulatory action comes after the National Financial Reporting Authority (NFRA) imposed a ten-year debarment on Maiya and levied a fine of Rs 50 lakh for ‘professional 
misconduct’ related to the audit of 'Coffee Day Enterprises', which is alleged to have concealed a significant fraud.  
 
Sebi’s interim order is based on an order by NFRA that barred Maiya from auditing for professional misconduct relating to a Rs 3,535-crore unauthorised fund diversion by subsidiaries 
of Coffee Day Enterprises to related entities.
 
Embassy Office Parks REIT primarily invests in income-producing office assets across India. It is a part of Embassy Group, one of the leading commercial real estate developers in the 
country.
 
In the past one year, Embassy Office Parks REIT shares have gained 28.6 per cent against Nifty's rise of 23 per cent. 
 


Source : Business Standard