Zerodha CEO Nithin Kamath has been fined for a delay in appointing a new CFO. The firm has announced its intention to contest the ruling.
Zerodha and Its Executives Fined ₹5 Lakh for CFO Appointment Delay; Company to Appeal
Zerodha Asset Management Private Limited, along with its CEO Nithin Kamath and other top executives, has been fined ₹5 lakh by the Ministry of Corporate Affairs (MCA) for failing to appoint a Chief Financial Officer (CFO) within the mandated timeframe. This requirement applies to companies with share capital exceeding ₹10 crore.
The fine, imposed due to non-compliance with Section 203(1) of the Companies Act and Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, came after Zerodha admitted the violation on January 9. The company did not appoint a CFO until March 24, when Chintan Bhatt was finally brought on board.
Vishal Jain, CEO of Zerodha Asset Management Private Limited, explained that the penalty pertains to the period between the company’s incorporation and the commencement of its operations.
Zerodha plans to contest the fine and has filed an appeal with the Regional Director in Hyderabad.
Social Media Reaction:
Online reactions have been critical of Zerodha, with users expressing frustration over ongoing technical issues and accusing the company of hypocrisy.
One user commented, “Before giving advice to others, they should fix their own issues, like these administrative lapses and persistent technical glitches.”
Another user noted, “Technical glitches often lead to more losses than this fine ever could.”
A third user added, “The focus should be on addressing continuous glitches rather than imposing fines for administrative issues.”
A fourth user remarked, “Frequent app hangs at crucial times are a bigger concern. Zerodha should face heavier fines for these recurring problems.”