Shares of Yes Bank Plunge as Chairperson Ashok Chawla Steps Down Over Corruption Charges

The market regulator is also assessing the role of Chawla, who was named in a CBI chargesheet earlier this year, as chairman of the NSE.

New Delhi: Yes Bank Non Executive Chairperson Ashok Chawla has resigned effective immediately as per a stock exchange filing posted by the bank on Wednesday night.

The bank’s press release asserts that he stepped down acknowledging that during the current “transition period”, the bank would need a chairperson who could afford to “devote more time and attention”.

According to Mint, In July, the Central Bureau of Investigation named Chawla in a chargesheet in the Aircel-Maxis corruption case.

Chawla, a former secretary in the finance ministry and current chairperson of the NSE, might also have to resign from his latter post if the CBI gets the government’s approval to prosecute him.

Also Read: Aircel-Maxis: Did Chidambaram Subvert the Foreign Investment Promotion Board?

The Securities and Exchange Board of India (Sebi) is also assessing Ashok Chawla’s role as chairman of the NSE. Sebi received the complaints in the first week of October and started its scrutiny the same week, according to the Mint report.

Independent director Vasant Gujarathi also resigned with immediate effect citing personal commitments, said another filing of the bank. However, sources said Gujarathi, who was heading the audit committee, had resigned because of certain observations made by the RBI on issues related to audit and corporate governance in the bank.

The bank’s board has also approved appointment of Uttam Prakash Agarwal as an additional director (Independent) for a period of five years.

Shares of the private sector lender slipped as much as 6.67%  to Rs 207.65 apiece on the BSE in the early morning trade on Thursday .

(With PTI Inputs)