Ashok Chawla, chairman of Yes Bank, who is under the CBI scanner in the Aircel-Maxis case, resigned from the bank’s board.
“Ashok Chawla, non-executive (independent) chairman of the board has tendered his resignation on 14 November with immediate effect,” the bank said in a late evening exchange filing on Wednesday.
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Chawla, is also the chairman of National Stock Exchange of India and a former finance secretary, was named in a corruption chargesheet by CBI.
Yes Bank is already struggling to find a replacement for CEO Rana Kapoor whose term has been cut short by RBI.
“The bank shall in due course announce the appointment of a chairman, post RBI’s approval,” Yes Bank said.
“Chawla’s resignation has been accepted by the bank as a good corporate governance move. The resignation will help Yes Bank remove uncertainties revolving around its board chief’s office functioning, clear the bank’s board of uncomfortable questions regarding the corruption case and possibly be perceived by investors and regulators as a responsible move,” a person familiar with the development told The Mint newspaper.
On 19 July, CBI named Chawla in a chargesheet related to the Aircel-Maxis case.
Yes Bank, on Wednesday also accepted the resignation of Vasant Gujrati, the chairman of the bank’s audit committee, said a second person according to the newspaper.
Individuals under prosecution and those who have been convicted of any offence involving moral turpitude or an economic offence or violation of securities laws cannot lead stock exchanges under Sebi’s stock exchanges and clearing corporations norms.
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