Sebi denies permission to crisis-hit PFS to hold board meeting

In January, all the three independent directors on the company’s board had resigned over corporate governance issues and other matters

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SEBI | PTC India Financial Services | RBI

Market regulator Sebi has denied permission to crisis-hit PTC India Financial Services Limited (PFS) to hold a board meeting without independent directors, the company said.

In January, all the three independent directors on the company’s board had resigned over corporate governance issues and other matters.

“… it is to be mentioned that SEBI vide its e-mail dated March 02, 2022 has informed that the Company’s request for conducting Board meeting without an ID (independent director) has not been acceded,” PFS said in a stock exchange filing on Thursday.

A meeting of its board of directors was scheduled to be held on January 22, 2022. However, in absence of the required quorum in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the same could not be held.

It is for the second time in a row that the Securities and Exchange Board of India (SEBI) has denied permission to PFS to go ahead with its board meeting.

Earlier on January 22, the company had informed stock exchanges that SEBI has directed it to address the corporate governance issues and all other matters raised by the resigning independent directors and ex-chairperson first, before holding any board meeting.

In the filing, PFS further mentioned that the company has already submitted point-wise reply to the allegations made by the independent directors in their resignation letter dated January 19, 2022 and also the action taken report as desired by SEBI.

“The matter is being taken up with the SEBI for effective resolution and shareholders shall be kept informed in this regard,” it added.

Independent directors Kamlesh Shivji Vikamsey, Santosh B Nayar and Thomas Mathew T had resigned over corporate governance issues and other matters.

PFS, promoted by PTC India Ltd (PTC), is registered with the RBI as a Non-Banking Financial Company (NBFC). The systemically important non-deposit taking NBFC has been classified as an ‘Infrastructure Finance Company (IFC)’ by the RBI.

PFS shares closed almost flat at Rs 16.6 apiece on BSE.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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