OnMobile CEO Arvind Rao steps down
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Telecom value-added service provider OnMobile's Managing Director and CEO Arvind Rao resigned from the post amid allegations of financial irregularity on Monday.
OnMobile, incubated at Infosys, in a statement said Rao's resignation has been accepted by the Board.
"Recognising that these weaknesses took place during his tenure, Arvind Rao, has submitted his resignation from the position as Managing Director and CEO with immediate effect and the Board has accepted the same," the statement said.
Though the company did not mention specific details but said that OnMobile during review of its corporate governance procedures identified weaknesses in some processes and initiated steps to rectify all the weaknesses.
"While the review has identified some weaknesses, strong alternate controls have ensured that the Company did not suffer any loss," it added.
OnMobile's Co--founder and Executive Director Mouli Raman, has been given role of interim Managing Director. The Company has also initiated a search for a new CEO.
"I respect Arvind's decision. Arvind has contributed greatly to OnMobile's growth," Chairman of the Board H H Haight said.
Over the past three months, OnMobile's shares price is down 44 per cent while the BSE 200 index was flat. This shows that the market is concerned over challenges faced by the company.
