BENGALURU (Reuters) -PTC India Financial Services Ltd (PFS) shares fell more than 18% on Thursday in their worst day since May 2015 after three of its independent directors resigned, citing lapses in corporate governance.
The non-banking financial company said on Wednesday evening that it had received resignation letters from directors Kamlesh Shivji Vikamsey, Thomas Mathew and Santosh Nayar.
In his letter, Mathew said independent directors had flagged serious lapses in corporate governance and compliance to the company on multiple occasions.
“I have placed on record many times – specially over the last few months – my deep displeasure about the lack of appropriate information being made available to the board,” Mathew said.
Some of the issues highlighted in the letter included the appointment of a full-time director, non-disclosure of a forensic audit report regarding a loan account and unilateral changes in loan conditions without board approvals.
The company also did not address corporate governance issues reported by previous chairman Deepak Amitabh, Mathew said.
PFS said on Thursday it was in receipt of resignations from the directors mentioning “some reasons” and that it rejects the allegations.
The company’s majority owner, PTC India Ltd , said in an exchange filing https://bit.ly/3fJaHV8 on Thursday that a senior level committee was looking into the issues.
“(We have) observed that there are difference of opinion at operation & Board level of PFS on few issues,” PTC India Chairman and Managing Director Rajib Mishra said in the filing.
PTC India, whose shareholders include NTPC, NHPC and Power Grid Corp, has a 65% stake in PFS, according to stock exchange data.
Shares of PFS have risen nearly 10% so far this month after ending 2021 with little gains.
(Reporting by Nallur Sethuraman and Anuron Kumar Mitra in Bengaluru; editing by Uttaresh.V, Subhranshu Sahu and Anil D’Silva)
