TC Nair: Right Man, Right Place, Right Time!

The new director of Financial Technologies has an interesting background

On 17th September, Financial Technologies announced the appointment of TC Nair as an independent director. This was at a time when dozens of independent directors, former Union secretaries, regulators, bank chairmen, industrialists and group senior officials were rushing for the exit door. On the face of it, Mr Nair seems a great catch. Financial Technologies was hunting for former regulators and, while many had turned down the offer, this former whole-time director of SEBI and ex-managing director at Bharatiya Reserve Bank Note Mudran Ltd was happy to accept. While other directors of the FT-MCX group were probably worried about the onerous new liabilities and punitive provisions of the Companies Act 2013, Mr Nair is probably relying on his hitherto charmed existence. In 2007, TC Nair was at SEBI and in charge of regulating the Stock Holding Corporation of India Limited (SHCIL) which was a quasi-public sector company indulging in a serious scam under a rogue CEO named R Jayaraman Iyer.

During my investigation, I discovered that SHCIL had leased and furnished an apartment belonging to Mr Nair at Palghat (Kerala) for use as a ‘guest house’ even though it had absolutely no business in that town. In fact, the flat was being maintained, with a caretaker, for Mr Nair’s use when he visited. Despite the disclosure, the then SEBI chairman, a close friend of Jayaraman Iyer, made no attempt to investigate or act.
In May 2008, Mr Nair ignored copious evidence about the Zee group’s involvement in the Ketan Parekh scam (manipulation of its shares, funds running into hundreds of crores of rupees borrowed and transferred to Parekh through Global Trust Bank and much more) and let it off with a warning. This at a time the group was negotiating a ‘consent decree’, haggling to ensure that it paid only Rs5 crore. This order was the basis for several other companies involved in the Ketan Parekh scam to get away too.

Mr Nair had similarly closed the case against the Central Depository Services Limited (CDSL), without even a warning, in the infamous IPO scam. With this background, he clearly believes he has nothing to worry about and plenty of perks to enjoy in the Financial Technologies group.

Comments
Pearl Nook
7 years ago
Baseless alegations ....poor quality reporting.
hasmukh
9 years ago
With such people holding chairs of the regulator (SEBI) & now spreading their wings to Financial Technologies (controlling NSEL etc), it appears difficult for the people to recover their monies which is held up.
Gopalakrishnan T V
9 years ago
With all regulation, close observations and watchful eye,authorities are able to hoodwink and go their own way to run the institutions, only indicates that they can get away with anything and they do not care a bit for the laws of the land. Money Life is doing its best to bring out the irregularities and wrong doings and this deserves all support and encouragement from general public who are being cheated day in day out.
MG Warrier
9 years ago
Interesting revelations, Sucheta.
In the good old days, agricultural loan had 3 components. (A) Cash, (B) Kind- inputs like seeds, fertilizers etc provided in ‘kind’ and (C) Consumption element- The farmer’s ‘pocket money’ till the crop is harvested. I think, now the ‘public servant’s(include those who work in private sector, but handle other people’s funds) remuneration package has several components. And several ‘quid pro quo’s. Hiring retired people has many dimensions. Moneylife is doing an unpleasant job, which the mainstream media is aviding to do.
Sunil
9 years ago
Wow unbelievable...
Jose Koshy
9 years ago
Sad...Like CIBIL Scores, we must have an Independent director Score.

Recently JP Morgan had to pay $920M to settle a case, In India such cases can be settled under Rs 5 Crores...Sad !
Free Helpline
Legal Credit
Feedback