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Zerodha Asset Management fined for delaying CFO appointment beyond stipulated timeframe.
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Company and key directors, including founder Nithin Kamath, penalized for violating Companies Act.
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Zerodha to contest order, citing unintentional delay and appeal already filed.
Zerodha Asset Management has been fined by the Ministry of Corporate Affairs (MCA) for failing to appoint a Chief Financial Officer (CFO) within the required timeframe. The company, which is a recent entrant in the Indian mutual fund industry, violated Section 203 of the Companies Act, 2013, by not appointing a CFO until March 24, 2023, resulting in a delay of 459 days.
The MCA has imposed penalties on the company and its key directors, including founder Nithin Kamath, for non-compliance. However, Zerodha has stated that the delay was unintentional and has already filed an appeal against the order. The company had applied to address the delay in appointing a CFO within six months of incorporation.
Zerodha Asset Management has crossed Rs 2,000 crore in assets under management (AUM) since its launch in November 2023. The company is a venture between brokerage Zerodha and wealth-tech platform smallcase, and is among the newest entrants in the Indian mutual fund industry.
