Mumbai: Serious governance concerns have surfaced regarding RTGS-enabled fund movements and liability adjustments at Regency Fincorp Limited, a publicly listed NBFC, prompting demands for immediate intervention to prevent any further misuse of company funds.

According to market sources and stakeholder observations, there is a credible apprehension that company liabilities may have been serviced or adjusted through RTGS-controlled withdrawals, followed by cash movements that may not align with disclosed business purposes. These concerns have led to fears that listed-company funds could potentially be exposed to personal-use risk, which, if left unchecked, could amount to a serious governance failure.

🔴 Why the Alarm Is Serious

Experts point out that for a publicly listed NBFC:

• Company funds cannot be routed or withdrawn in a manner that bypasses documented business purposes

• Any RTGS-based liability settlement followed by cash handling demands strict audit trails

• Personal benefit—direct or indirect—from company funds is strictly prohibited

• Even apprehension of such activity is enough to trigger regulatory action

Market participants warn that continuation of transactions without forensic verification may allow further damage, especially when the company has recently raised ₹25 crore through listed NCDs, placing investor money at stake.

⛔ Demand to Stop Any Further Transactions

In view of the situation, stakeholders are calling for:

• Immediate pause on all fund movements and RTGS-enabled transactions

• Forensic audit of past RTGS transfers, liability adjustments, and cash flows

• Verification of whether any company funds were exposed to personal-use risk

• Debenture Trustee and regulator-led supervision before any further deployment

Experts stress that this is not about past guilt, but about stopping any fresh cheating or misuse before it happens, particularly because the company is publicly listed and answerable to investors.

🏛️ Regulatory Implications

Under SEBI and RBI frameworks:

• Any personal-use exposure of company funds can invite forensic audit, management review, and transaction freeze

• Listed NBFCs are held to higher governance and disclosure standards

• Preventive action is preferred over post-damage enforcement

📣 Public Interest & Investor Protection

Analysts say that silence or delay at this stage could erode investor confidence, while swift preventive action would protect:

• Public shareholders

• NCD investors

• Credit ratings

• Market integrity

⏳ Company Clarification Awaited

As of publication, no detailed clarification has been issued addressing concerns around RTGS controls, cash handling, or liability settlements. Stakeholders expect transparent disclosure and independent verification at the earliest.

⚖️ Disclaimer

This report is based on market observations, publicly available information, and stakeholder concerns. It does not allege or conclude wrongdoing by any individual. The article is published strictly in the interest of public awareness, investor protection, and regulatory transparency.