PTC India Financial shares slump after directors quit on corporate governance issues (updated)

Ptc India Financial Services

20/01/2022 05:06

(Adds response from majority owner PTC India)
    BENGALURU, Jan 20 (Reuters) - PTC India Financial Services
Ltd (PFS)  PTCN.NS  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  PTCI.NS , 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  PTCI.NS , whose shareholders include NTPC
 NTPC.NS , NHPC  NHPC.NS  and Power Grid Corp  PGRD.NS , 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)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))