Shares of PTC India Financial Services slumped over 19 per cent in early trade on Thursday after all three independent directors on the company’s board resigned over corporate governance issues and other matters. On the BSE, the shares tanked 19.49 per cent to a low of Rs 20.65 in early trade. It was later trading at Rs 21.20, down 17.35 per cent.
In tandem, the stock fell 19.10 per cent to Rs 20.75 on the NSE in the opening session. It was later trading at Rs 21.25, down 17.15 per cent.
On Wednesday, three independent directors of PTC India Financial Services (PFS) — Kamlesh Shivji Vikamsey, Santosh B Nayar and Thomas Mathew T– resigned from the board with immediate effect.
In the resignation letters, they 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 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”. PFS, promoted by PTC India Ltd (PTC), is registered with the RBI as a non-banking financial company (NBFC). The systemically important non-deposit taking NBFC has been classified as an ‘Infrastructure Finance Company (IFC)’ by the RBI.