Shares of PTC India Financial Services nosedived 19 percent on Thursday on the BSE, a day after three independent directors resigned from the non-banking financial company with immediate effect citing corporate governance issues.
At 1 pm, shares of PTC India were trading at Rs 21.50, down 4.15 points, or 16.18 percent.
The three independent directors – Kamlesh Shivji Viakmsey, Thomas Mathew T, and Santosh B Nayar – expressed grave concerns about the behaviour of PFS India's management, led by managing director and CEO Pawan Singh.
Reuters reported that in his resignation letter, Mathew said independent directors had flagged serious lapses in corporate governance and compliance multiple times.
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"I have placed on record many times - especially over the last few months my deep displeasure about the lack of appropriate information being made available to the board," Mathew wrote.
Some of the issues pointed out included the appointment of a whole-time director, non-disclosure of a forensic audit report regarding a loan account, and unilateral changes in loan conditions without board approvals.
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 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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