Two independent directors of FT resign

The two directors are P Devarajan and P R Barpande

Two independent directors, P Devarajan and P R Barpande, have resigned from the board of Financial Technologies India Ltd (FTIL). This follows a Rs 5,500-crore payment default at National Stock Exchange Ltd (NSEL), promoted by FTIL.

The other independent directors in the board are Ravi Seth, Chandrakant Kamdar and C M Maniar. On Thursday, the board appointed N Balasubramaniana as additional non-executive director.

Another independent director, P G Kakodkar, had resigned in the first week of August. However, the FTIL site still mentions him as a director.

Today's resignations followed nationwide income tax surveys on NSEL defaulters. FTIL informed the stock exchange of the resignations late in the evening, without citing any reason for the exits. Insiders say the directors didn't want to get into a legal tangle that is now spreading across group companies.

Many investors and brokers have said they would take all NSEL and FTIL directors to court due to the payment default. An investor forum has already moved the Bombay High Court against NSEL and its directors.

NSEL, which has failed to collect Rs 5,500 crore of receivables from defaulters, is also accused of fraud and forgery by brokers.