Shares of PTC India Financial Services Ltd (PFS) fell 19% on BSE in Thursday’s trading in their worst intraday trade since May 2015. The negative reaction comes after three independent directors resigned due to security concerns. corporate governance and other matters in an unusual context. development.
The company advised in an exchange filing that it had received resignation letters from independent directors Kamlesh Shivji Vikamsey, Thomas Mathew and Santosh Nayar. In his resignation letter, Mathew said the independent directors had repeatedly flagged serious corporate governance and compliance lapses.
“The stock is under pressure after reports of the corporate governance issue. Those holding the stock are advised to exit on any rebound as the stock is likely to continue to make new lows in the coming trading sessions. trading,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.
Some of the issues reported included the appointment of a full-time manager, non-disclosure of a forensic audit report regarding a loan account, and unilateral changes to loan terms without board approval. administration.
PFS said on Thursday it had received the resignations of three independent directors citing “certain reasons” and the matter would be dealt with at board level.
“Stock has strong support at ₹18 and currently it is trading in the range of ₹18 to ₹25. Those who have this stock in their portfolio are advised to maintain a strict stop loss at ₹18 levels. And you have to avoid taking a new position in this counter,” said Sumeet Bagadia, executive director of Choice Broking.
PFS, promoted by PTC India Ltd, is registered with the RBI as a non-banking financial company. The directors have also sent their resignation letters to the Reserve Bank of India (RBI), the Securities and Exchange Board of India (Sebi) and the Ministry of Corporate Affairs.
The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.
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