Proxy advisory firm urges Raymond's independent directors to probe assault allegations

Raymond

28/11/2023 08:47

Nov 28 (Reuters) - Institutional Investor Advisory
Services (IIAS), an Indian proxy advisory firm, on Tuesday urged
the independent directors of textile company Raymond Ltd
 RYMD.NS  to launch an investigation into the allegations of
assault against its managing director.
        According to local media reports, Nawaz Modi Singhania -
the wife of Managing Director Gautam Singhania and a board
member -  alleged that she and her daughter were physically
assaulted by Singhania in September 2023.
    CNBC TV 18 reported that Singhania has written to the
company's board of the company assuring smooth functioning of
business amid the ongoing separation with his wife.
        Reuters has not independently seen the letter. An email
sent by Reuters to a company spokesperson was not answered
immediately.
  
    Raymond's shares fell on Tuesday for a tenth straight
session and have lost over 16% during the period. The share
slump started on Nov. 13, when Singhania announced separation
from his wife on social media platform X, formerly known as
Twitter.
    IIAS said in an open letter that the independent directors 
need to communicate with investors and other stakeholders,
assuage their concerns and "articulate a course of action they
have taken following these public allegations".
    "In the interest of the company and safeguard the interests
of a larger set of stakeholders, we urge you to undertake an
independent investigation into the allegations of both, assault
and CEO excesses," IIAS said.

 (Reporting by Jayshree P Upadhyay; Editing by Saumyadeb
Chakrabarty)
 ((Jayshree.Pyasi@thomsonreuters.com; 9920092491; Reuters
Messaging: Twitter: @jaysh88))