PTC India Financial Shares Dive 19% As Directors Quit Citing Corporate Governance Issues
Shares of PTC India Financial Services (PFS) crashed as much as 19.49 per cent on Thursday, a day after the non-banking financial company said all three independent directors had resigned over corporate governance issues. The stock plunged to a day low of Rs 20.65.
"We are 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," the company stated in a notification to exchanges.
PFS, promoted by PTC India Ltd (PTC), is registered with Reserve Bank of India (RBI) as a NBFC.
"Kamlesh Shivji Vikamsey, Thomas Mathew T and Santosh B Nayar have resigned as Independent Directors with immediate effect," PFS had informed the exchanges on Wednesday.
This is possibly the first instance where all the independent directors of a company have resigned together.
The directors have also sent of their resignation letters to the RBI, Securities and Exchange Board of India (SEBI) and Ministry of Corporate Affairs.
In the resignation letters, the directors have 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 Managing Director and Chief Executive Officer 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 referred to the issues regarding Rs 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.
Pointing out that independent directors' communication were "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."
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
