Falguni Nayar

The timing of Nykaa's 5:1 bonus issue, close to the expiry of the lock-in period for several pre-IPO investors, sparked debate over corporate governance and the transaction's effect on investors' ability to sell their shares. Falguni Nayar publicly defended the decision.

State of the evidence

Corporate transaction, public criticism and Falguni Nayar's response documented

Legal status — source text

No personal proceedings or sanctions identified

Attribution

Executive responsibility for a board decision and its public defence

FSN E-Commerce Ventures and Falguni Nayar voluntarily applied for compounding of a non-compliance relating to the appointment of the statutory auditor for the 2019-20 financial year. The Regional Director compounded the Section 139 offence in September 2021 and imposed fees of 0.1 million rupees on the company and 0.02 million on Falguni Nayar, both of which were paid.

State of the evidence

Prospectus/RHP and compounding order disclosed in the offering documents

Legal status — source text

Regulatory offence compounded in September 2021; fees paid; case closed

Attribution

Personal responsibility documented as a promoter/director party to the compounding application

FSN E-Commerce Ventures acknowledged a 238-day delay in appointing a whole-time company secretary, contrary to Section 203 of the Companies Act. The Regional Director compounded the offence in September 2021; the company and directors serving during the relevant period, including Falguni Nayar, were ordered to pay compounding fees, with Falguni Nayar required to pay 0.07 million rupees.

State of the evidence

Original prospectus/RHP documenting the delay, compounding and fees

Legal status — source text

Section 203 offence compounded on 29 September 2021; fees paid

Attribution

Personal responsibility documented as a director during the period of non-compliance

In November 2019, the Joint Labour Commissioner issued a notice to Nykaa E-Retail and Falguni Nayar alleging failure to submit mandatory returns and pay the cess required for warehouse construction works. The notice requested the necessary documents and payment of a cess equivalent to 1% of construction costs.

State of the evidence

Notice disclosed in Nykaa's original RHP

Legal status — source text

Matter listed as pending in the 2021 RHP; no subsequent outcome publicly identified in the exhaustive search

Attribution

Falguni Nayar personally named as a recipient alongside Nykaa E-Retail; administrative allegation not adjudicated