Embassy Office Parks REIT is considering all legal options, including approaching the Securities Appellate Tribunal (SAT) against the SEBI order asking its chief executive Arvind Maiya to step down, sources in the know said.
An email sent to Embassy REIT did not elicit any response.
Sources said though Embassy REIT does not agree with the SEBI, it has obeyed the order and let Maiya to step down. “The CEO is a business manager, and not an audit professional. Still, the company obeyed the order as it came from a regulator,” sources said.
Embassy REIT’s unit price fell nearly 3% to hit a low of Rs 392.69 during the day, but managed to close at Rs 395, down 1.8% from Monday’s close.
In an interim order, SEBI on Monday instructed Embassy Office Parks Management Services, the manager of Embassy REIT, to immediately suspend Maiya from the CEO position for lapses in the ‘fit and proper’ category.
The directive came in the wake of concerns over Maiya’s professional background following an investigation by the National Financial Reporting Authority (NFRA) related to his role as an auditor in a past financial misconduct case. The interim order will apply until further directions, or till the NFRA order dated August 19 is stayed or set aside, whichever is earlier.
After SEBI order, in a mid-night stock exchange intimation, the REIT said it is reviewing the order and evaluating all options. In compliance with SEBI’s directive, Aravind Maiya will be stepping down as the CEO of Embassy REIT and will assume the role of the head of strategy for Embassy REIT.
The REIT’s board and the management team will oversee its operations.
“Embassy REIT is the foundation of the REIT asset class in India. The REIT’s strong management team in place will continue to be focused on delivering exceptional results, as evidenced by the REIT’s H12025 performance. The business is in great shape and the REIT’s stock performance is a reflection of strong fundamentals in the sector,” the REIT in the filing.
