Shares of PTC India Financial Services (PFS) crashed as much as 19.49 per cent on Thursday, a day after the non-banking financial company said all three independent directors had resigned over corporate governance issues. The stock plunged to a day low of Rs 20.65.
"We are in receipt of resignations from three independent directors mentioning some reasons. The matter will be addressed at the board level and subsequent update will be communicated to all the stakeholders appropriately," the company stated in a notification to exchanges.
PFS, promoted by PTC India Ltd (PTC), is registered with Reserve Bank of India (RBI) as a NBFC.
"Kamlesh Shivji Vikamsey, Thomas Mathew T and Santosh B Nayar have resigned as Independent Directors with immediate effect," PFS had informed the exchanges on Wednesday.
This is possibly the first instance where all the independent directors of a company have resigned together.
The directors have also sent of their resignation letters to the RBI, Securities and Exchange Board of India (SEBI) and Ministry of Corporate Affairs.
In the resignation letters, the directors have alleged that certain actions of the Chairman of the Board and Managing Director of the company are "ultra-vires" and "in violation" of the provisions of the Companies Act, 2013.
Pawan Singh is the Managing Director and Chief Executive Officer of the company. The two nominee directors on the board of the company are Rajib Kumar Mishra and Pankaj Goel.
The independent directors have also referred to the issues regarding Rs 125 crore-bridge loan given to NSL Nagapatnam Power and Infratech Pvt Ltd, besides alleging that "no action" has been taken on certain corporate governance issues.
Pointing out that independent directors' communication were "blatantly ignored," they said, "such non-cooperation on the part of the management and the company is unfortunate and a deterrent to the spirit of the law and impedes the functioning of the independent directors on the board of the listed company."