TFS Gulf
  • All categories
    • inPractice
    • Entrepreneur Story
    • Finance Leaders
    • Videos
TheFinanceStory
No Result
View All Result
  • Login
  • Register
  TFS Gulf
  • All categories
    • inPractice
    • Entrepreneur Story
    • Finance Leaders
    • Videos
The finance story
No Result
View All Result
  • Login
  • Register
The Finance Story
No Result
View All Result

Zerodha Asset Management without a CFO

Zerodha Asset Management has been penalized by the Ministry of Corporate Affairs of India for not hiring a CFO for 459 days, violating the The Companies Act, 2013, Section 203.

Preeti Mondal by Preeti Mondal
Published date: 9th August, 2024
Last edited date: 12th August, 2024
SHARE (0)
Zerodha Asset Management fined after 459 days without a CFO
Share on FacebookShare on Twitter
  • 459 days without a CFO!
  • It is the reason why Zerodha Asset Management has been hit with a substantial penalty by the Ministry of Corporate Affairs of India.
  • The company has been fined approximately ₹23.9 lakhs.

What happened?

Zerodha Asset Management, a prominent player in India’s financial landscape, has recently faced scrutiny from the Ministry of Corporate Affairs (MCA) for non-compliance with Section 203 of the Companies Act.

The issue centers on the company’s delay in appointing a Chief Financial Officer (CFO), resulting in hefty penalties for both the organization and its leadership.

Zerodha’s violation of the Companies Act, 2013

The Companies Act, 2013, Section 203, requires companies of certain sizes, particularly those with paid-up share capital over ₹10 crore, to appoint full-time key managerial personnel, including a CFO and a company secretary.

Zerodha Asset Management, operating under Zerodha Fund House, functioned without a CFO for 459 days, spanning from December 20, 2021, to March 23, 2023.

This compliance gap prompted the MCA to intervene.

The company later filled the position by hiring Chintan Vasantlal Bhatt on 24th March, 2023.

Suo-Moto application

On January 9, 2024, Zerodha Asset Management admitted its non-compliance by submitting a suo-moto application.

Penalty levied 

This self-disclosure led the Karnataka Registrar of Companies (RoC) to levy penalties on the company.

The MCA has levied a maximum penalty of ₹5 lakh on the company.

Additionally, Founder and Director Nithin Kamath was fined ₹4.08 lakh, while Director Rajanna Bhuvanesh received the highest penalty of ₹5 lakh.

CEO Vishal Jain and Company Secretary Shikha Singh were each fined ₹3.45 lakh, and Directors Nithya Easwaran and Tushar Mahajan were fined ₹1.50 lakh each, according to Money Control.

Also read: Zoho and Juspay get payment aggregator license from RBI: A good sign for fintechs in India

Zerodha’s response

Zerodha Asset Management has challenged the MCA’s ruling, contending that the CFO appointment delay occurred before the company began operations.

Despite this defense, the firm has been fined and filed an appeal with the Hyderabad Regional Director on July 16, 2024, according to Moneycontrol.

About Zerodha Asset Management

Zerodha Asset Management Private Limited (ZAMPL) or Zerodha Fund House is the asset management arm of the popular Indian brokerage firm, Zerodha.

The company received final approval from the Securities and Exchange Board of India (SEBI) to commence operations in August 2023.

The firm operates as a joint venture between Zerodha and the investment technology platform smallcase.

In March, Zerodha Mutual Fund announced that it had crossed Rs 1,000 crore in assets under management (AUM).

Also read: RBI bans Paytm Payments Bank: Action taken after multiple warnings about questionable transactions.

Leadership

Chief Executive Officer (CEO) & Sales Head – Vishal Jain

Chief Operating Officer (COO) & Investor Relation Officer (IRO) – Anand Jasrapuria

Chief Information Security Officer (CISO) – Chirag Rastogi

Chief Risk Officer (CRO) – Akshay Degamwar

Chief Technology officer (CTO) – Ratan Kumar

Wrapping up

Zerodha Asset Management’s case underscores the vital role of corporate governance in companies’ long-term success, especially in highly regulated sectors like asset management.

While Zerodha has taken steps to rectify the issue, this corporate governance lapse may affect the company’s reputation and expansion in these developing markets.

Preeti Mondal

Preeti Mondal

Recommended for you

CAs retain exclusive Tax Audit rights; CMAs, CS excluded
Chartered Accountant

CAs Retain Exclusive Tax Audit Rights; CMA, CS Officially Excluded

23rd July, 2025 | 4 mins read
Saudi's $500Bn ‘Line’ Project under review as costs surge
News

Saudi’s $500Bn Megacity Project under review: McKinsey in spotlight

22nd July, 2025 | 3 mins read
Figma’s $100Mn AWS Cloud Bill. Are CFOs paying attention?
CFO

Figma’s $100Mn AWS Cloud Bill. Are CFOs paying attention?

14th July, 2025 | 4 mins read
Indian CA Firms may finally be allowed to advertise 
InPractice

CA Firms may be allowed to advertise?

10th July, 2025 | 3 mins read
Big 4 US, UK graduate jobs are vanishing: Thanks to AI & Offshoring
Big 4

Big 4 replace graduate roles with AI & Offshoring?

10th July, 2025 | 4 mins read
Italy approves 500,000 blue-collar visas
Cross Border

Italy approves 500,000 blue-collar visas. Big push to hire Non-EU workers

6th July, 2025 | 3 mins read
Next Post
X's fintech leap: Elon's company plans to rollout in-app payment feature

X's fintech leap: Elon's company plans to rollout in-app payment feature

Start conversation Cancel reply

Your email address will not be published. Required fields are marked *

Popular posts

  • KPMG Partner quits and goes Boutique with high end advisory firm: Now has 5+ offices & 75+ team

    KPMG Partner quits and goes Boutique with high end advisory firm: Now has 5+ offices & 75+ team

    0 shares
    Share 0 Tweet 0
  • Big 4 firms in India: Inside Deloitte, PwC, EY & KPMG career prospects, growth and salaries

    0 shares
    Share 0 Tweet 0
  • Designations in HDFC Bank: From Joining as an Assistant Manager to climbing to the rank of Managing Director.

    80 shares
    Share 0 Tweet 0
  • Big 4 India Partners jumping from one firm to another: High alert as Partner poaching surges

    0 shares
    Share 0 Tweet 0
  • CA Firms Kirtane & Pandit, Guru & Jana, SSKM unite to build India’s Next Big Global Consulting Firm

    0 shares
    Share 0 Tweet 0
  • Hierarchy level in ICICI Bank: Thinking of joining ICICI Bank? Here’s an overview of the employee grades.

    175 shares
    Share 0 Tweet 0
  • ICAI Under Fire: Women Removed from Front Row at CA Students’ Conference Following Guest’s Demand

    0 shares
    Share 0 Tweet 0
  • EY, PwC, Deloitte surpass 3,300 Partners. EY added 1000+ new Partners

    0 shares
    Share 0 Tweet 0
  • UK firm outsourced accounting work to India but quality dropped: Now established his own offshore unit

    0 shares
    Share 0 Tweet 0
  • Deloitte India offers ‘Golden Handshake’ to senior Partners aged 55 & above. Plans to elevate young partners.

    0 shares
    Share 0 Tweet 0
The Finance Story

The Finance Story empowers finance professionals—CFOs, consultants, accountants, tax experts, and bankers—to navigate critical market shifts, industry disruptions, and emerging technologies & trends.

How? We spotlight key opportunities in India and globally, equipping finance professionals with the insights and strategies to drive business growth, optimize decision-making, and position their companies at the forefront

Quick Links

  • Finance
  • Partners
  • Privacy and Policy
  • Terms of use

Follow us

  • /TheFinanceStory
  • @TheFinanceStory
  • /TheFinanceStory
  • @thefinancestory_com
  • TheFinanceStory

© 2022. The Finance Story. All Rights Reserved.

No Result
View All Result
  • TFS Gulf
  • Entrepreneur Story
  • Finance Leaders
  • Videos
  • Login
  • Sign Up

Welcome Back!

Sign In with Google
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Google
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies to personalize your experience. By continuing to visit this website you agree to our use of cookies.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Book 1:1 call with industry expert