The MCA has imposed a fine on Zerodha Asset Management

The Ministry of Corporate Affairs (MCA) has imposed penalties on Zerodha Asset Management Private Limited and its key directors, including founder Nithin Kamath, for failing to appoint a Chief Financial Officer (CFO) within the stipulated timeframe, thereby violating the law. On January 9, 2024, Zerodha Asset Management filed a suo-moto application admitting that they had not appointed a CFO, in violation of Section 203 of the Companies Act, 2013.

This law requires companies like Zerodha, which are deemed public companies with a paid-up share capital exceeding Rs 10 crore, to have a full-time key managerial personnel, including a CFO.

The firm did not comply with this rule until March 24, 2023, when Chintan Bhatt was finally appointed.

The delay, spanning 459 days, led to the ministry’s decision to impose significant penalties.

Credit - Indian Startup News