PTC India Financial shares tumble after directors quit over corporate governance issues

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BENGALURU, Jan 20 (Reuters) – Shares of PTC India Financial Services Ltd (PFS) (PTCN.NS) fell more than 18% on Thursday in their worst day since May 2015 after the resignation of three of its independent directors, citing failures in corporate governance.

The non-banking finance company said Wednesday evening that it had received resignation letters from directors Kamlesh Shivji Vikamsey, Thomas Mathew and Santosh Nayar.

In his letter, Mathew said the independent directors have repeatedly reported serious breaches of corporate governance and company compliance.

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“I have repeatedly stated – particularly in recent months – my deep dissatisfaction with the lack of proper information made available to the board,” Mathew said.

Some of the issues highlighted in the letter included the appointment of a full-time manager, non-disclosure of a forensic audit report on a loan account, and unilateral changes to loan terms without the approval of the board of directors.

The company also failed to address corporate governance issues flagged by former chairman Deepak Amitabh, Mathew said.

PFS said Thursday that it had received the directors’ resignations citing “certain reasons” and that it rejected the allegations.

The company’s majority owner, PTC India Ltd (PTCI.NS), said in an exchange report on Thursday that a high-level committee was looking into the issues.

“(We) observed that there are differences of opinion at the operational and board level of PFS on a few issues,” PTC India President and CEO 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 market data.

PSF shares are up nearly 10% so far this month after ending 2021 with little gain.

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Reporting by Nallur Sethuraman and Anuron Kumar Mitra in Bengaluru; edited by Uttaresh.V, Subhranshu Sahu and Anil D’Silva

Our standards: The Thomson Reuters Trust Principles.

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