Shares of PTC India Financial Services Ltd fell 8.3% on Monday after India’s market regulator ordered the non-banking financial firm over the weekend to address corporate governance issues before holding a board meeting.
The Securities and Exchange Board of India (SEBI) has also requested PTC India Financial to file a report on the action taken within four weeks, the company said.
The company has been accused of corporate governance lapses by four independent directors, who resigned last week.
The company’s majority owner, PTC India Ltd, said last week it would investigate the matter and formed an internal committee, which would submit a report within 30 days.
The board meeting of PTC India Financial was scheduled for January 22, but could not be held. The non-banking finance company said it had filed an application with SEBI, requesting permission for the board meeting to appoint independent directors.
PTC India launched a tender in 2020 to sell its stake in PTC India Financial, but could not find any suitors.
Shares of PTC India Financial have fallen nearly 30% since hitting a multi-year high last week.
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Shounak Dasgupta)
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