Capital market regulator Securities and Exchange Board of India (Sebi) on Tuesday asked PTC India Financial Services (PFS) not to make any changes to the company’s board till the completion of the forensic audit. Earlier in January, Sebi had asked PFS to address corporate governance and other issues raised by its former chairman and outgoing independent directors before holding its board meeting.
Three independent directors — Kamlesh Shivji Vikamsey, Santosh B Nayar and Thomas Mathew — resigned en masse from the board of PFS citing corporate governance and other issues on January 19. “Given that SEBI has provided a specific action to the company vide SEBI email dated May 13, 2022 – ‘PFS is advised to not change the structure and composition of the PFS Board, till the completion of a forensic audit by M/s CNK & Associates LLP and submission of report by Risk Management Committee (RMC) of PTC India Ltd,” PFS said in a regulatory filing.
The company is advised to continue to comply with these specific instructions issued by Sebi in the matter, it added. 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.