The Centre fined Zerodha Asset Management and its key directors, including founder Nithin Kamath, for delaying the appointment of a CFO. Zerodha admitted the fault on July 9, violating Section 203 of the Companies Act, 2013, which mandates a CFO for companies with paid-up capital over Rs 10 crore. The delay spanned 459 days, ending with Chintan Bhatt’s appointment on March 24, 2023. The Ministry of Corporate Affairs imposed fines totaling Rs 5 lakh on the company and varying amounts on individual directors. This fine highlights the importance of compliance for investors.
