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Shares of PTC India Financial Services (PFS) slumped near 19 per cent on Thursday after all three independent directors on the company’s board resigned over corporate governance issues and other matters.
Meanwhile, the company management informed the bourses on Thursday that it was in receipt of resignations from three independent directors “mentioning some reasons”. The matter will be addressed at the board level and subsequent update will be communicated to all the stakeholders appropriately, it added.
On the NSE, shares of PFS ended at ₹20.95, down 18.32 per cent lower against the previous day’s close of ₹25.65 The share closed at ₹20.95 in the BSE down 18.32 per cent over the previous day’s close.
PFS was promoted by PTC India Ltd and is registered with the RBI as a non banking finance company. This systemically important non deposit taking NBFC has been categorised as an Infrastructure Finance Company (IFC) by the RBI. Shares of PTC India also closed 10.86 per cent lower at ₹100.55 on the BSE.
Resignation from board
On Wednesday, three independent directors of PFS – Kamlesh Shivji Vikamsey, Santosh B Nayar and Thomas Mathew T – resigned from the board with immediate effect. In their resignation letters, they had alleged that certain actions of the Chairman of the Board and Managing Director of the company are “ultra-vires” and “in violation” of the provisions of the Companies Act, 2013. Pawan Singh is the MD & CEO of the company. The two nominee directors on the board of the company are Rajib Kumar Mishra and Pankaj Goel. The independent directors have also flagged ₹125 crore-bridge loan given to NSL Nagapatnam Power and Infratech Pvt Ltd, besides alleging that “no action” has been taken on certain corporate governance issues. Noting that independent directors’ communication was “blatantly ignored”, they said, “Such non-cooperation on the part of the management and the company is unfortunate, and a deterrent to the spirit of the law and impedes the functioning of the independent directors on the board of the listed company.”
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