Market regulator SEBI has urged PTC India Financial Services (PFS) to resolve corporate governance and other issues mentioned by its former CEO and other independent directors before holding the board meeting.
According to the company’s filing, SEBI has also directed the company to provide an “action taken report” on the matter within four weeks.
“The company has received a communication from the SEBI dated January 22, 2022 informing that the company is directed to address the CG (corporate governance) issues and all other issues raised by the resigning IDs (independent directors) and ex-chairperson first, before holding any Board meeting, and to file an action taken report in the regard to SEBI within four weeks,” the company said in the regulatory filing.
The company has also told SEBI that it has submitted an application with the regulator to seek an exemption from relevant requirements of the SEBI (LODR) Regulations, 2015 in order to schedule the Board meeting for the appointment of Independent Directors.
It reported that the company’s independent directors resigned on January 19, 2022, citing corporate governance issues presented by the ex-chairman at the PFS board meeting on August 5, 2021.
On the same day (August 5, 2021), the board of directors, which included the ex-chairman and exiting independent directors, issued a clean corporate governance report for the fiscal year ending March 31, 2021, and thanked the directors for their cooperation, according to the statement.
Following that, on September 24, 2021, the business’s ex-chairman addressed the company’s shareholders in the 15th Annual General Meeting, expressing gratitude for the company and expressing no concerns about corporate governance, according to the filing.
In his resignation letter, Rakesh Kacker, an independent director of PTC India, said that despite his best efforts, the “independent directors could not persuade the management of PTC and PFS to take proper action to run the company in accordance with what we considered the correct course of action.”