Bank of Maharashtra (BoM) has received a warning from the Securities and Exchanges Board of India (SEBI) for lapses in the nomination and remuneration committee (NRC) meeting. The warning is a result of an examination by SEBI, which found that the bank did not comply with regulatory guidelines on NRC meetings.
According to SEBI’s examination report, BoM failed to provide adequate notice to the NRC members for the 26th AGM, held on August 25, 2020. The report stated that the notice period was not adequate, which is in violation of SEBI guidelines.
SEBI further found that the NRC meeting was conducted without quorum, which is the minimum number of members required to be present for a meeting to be valid. The quorum requirement was not met, as only two members of the NRC attended the meeting, while three were required.
The examination report also highlighted that the NRC members were not provided with the necessary agenda and minutes of the previous meetings, as required by SEBI regulations. This is a crucial requirement to ensure transparency and accountability in corporate governance.
SEBI has warned BoM to take necessary measures to ensure compliance with the regulatory guidelines and has asked the bank to submit a compliance certificate. The warning comes at a time when the bank is already facing severe financial and reputational challenges.
BoM has been struggling with a high non-performing assets (NPAs) ratio, and its net losses have been increasing in recent years. The bank is also facing a leadership crisis, with the managing director’s tenure coming to an end and no clear nomination for the top post yet.
The warning from SEBI is a significant setback for BoM, as it casts a shadow over the bank’s reputation and threatens to further erode investor confidence. The warning is a reminder of the importance of corporate governance and compliance with regulatory guidelines to maintain a good reputation and ensure the well-being of stakeholders.