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Abu Dhabi, Feb 17: NMC Health Plc, a hospital operator targeted by short-seller Muddy Waters, said founder Bavaguthu Raghuram Shetty resigned amid investor concern he faced a margin call and misrepresented his stake.

The board asked for Co-Chairman Shetty’s resignation and it takes effect immediately, according to a person with knowledge of the situation. NMC has lost four board members since Friday, including Vice Chairman Khaleefa Butti, whose holdings are also being probed. The stock, the worst performer on the FTSE-100 Index this year, fell as much as 9.2 percent Monday morning and then rebounded.

“The resignation of senior board members should be viewed positively,” said Abdulla Nahlawi, an analyst at Rasmala Investment Bank in Dubai. “The credibility of the current board has been jeopardized with the unfolding of the recent events.”

NMC shares lost almost half their value the first week of February on speculation the company’s main investors faced a margin call, in which banks seize shares pledged as collateral. NMC said Friday that First Abu Dhabi Bank and Al Salam Bank Bahrain obtained 20 million shares in the company from BRS International Holding, an investment vehicle of NMC’s top shareholders. The banks sold more than 8 million of those shares as “enforcement of security,” NMC said.

NMC operates the largest medical network in the United Arab Emirates and in 2012 became the first Abu Dhabi company to list in London. The shares started teetering in mid-December when Muddy Waters alleged that NMC manipulated its balance sheet and inflated the prices of companies it acquired.

Shetty, 77, was born in India and founded NMC in the 1970s after moving to Abu Dhabi. His spokesman said a legal review of the situation is ongoing and declined further comment.

Chief Investment Officer Hani Buttikhi and board member Abdulrahman Basaddiq also stepped down because they were appointees of Shetty and Butti, NMC said, adding that they had no knowledge of the share transfers.

Questions remain over the role of Shetty’s family at the company. His wife and son-in-law both hold roles in senior management.

Almost 10 per cent of NMC’s freely traded shares are shorted, according to Markit Securities data. In mid-December about a third of them were.

Last week GKSD Investment, an investment company backed by hospital investors, said it’s studying a possible offer for NMC. Under U.K. takeover rules, it has until March 9 to make a bid.

NMC has said Muddy Waters’s claims are false and the company hired former FBI Director Louis Freeh to conduct an independent review. The review is due to be completed before the company issues its financial results in March, the person said.

NMC said Mark Tompkins will continue as the company’s sole chairman.

Udupi, June 21: An entrepreneur lost his life after the car he was driving veered off the road and plunged into a roadside tank near Barkuru in Brahmavar taluk of Udupi district today.

The deceased has been identified as Santosh Shetty, a resident of Vakwadi in Kundapur taluk. He is the proprietor of Laxmi Glass and Plywood, Koteshwara. 

A woman, identified as Shweta, who was also on board the car suffered critical injuries.  

The mishap occurred when the duo was heading to Vakwadi from Brahmavar in Hyundai Car sedan car. 

Shetty lost control over his vehicle while negotiating a curve at Chaulikere and the car plunged off the road as there was no barricade. 

Even though local residents began rescue operation immediately, Shetty breathed his last on the spot. Shweta was rescued and shifted to a hospital in Manipal for treatment.

Bengaluru, Jul 13: In an attempt to avoid the ugly scene of migrant workers walking to their native places due to the current week-long lockdown imposed in the state, the Karnataka State Road Transport Corporation (KSRTC) is running 1,600 additional buses on Monday and Tuesday to help them return safely.

The KSRTC has already run 249 additional buses from the State capital and has so far ferried 6,641 passengers and 231 buses have been booked.

The KSRTC appealed to the public not to panic as additional buses have been deployed. "After ensuring social distance and conducting thermal screening, passengers will be allowed to travel. It has already been planned to operate additional buses," the corporation stated in a press release here.