Bengaluru scientist, Air Force officer arrested; drugs worth Rs 230-cr seized

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.

Bengaluru, Jul 8: The expert committee constituted by the Karnataka government to look into imparting online education in the wake of the COVID-19 lockdown submitted its report on Tuesday to the Minister for Primary and Secondary Education, S Suresh Kumar.

Amid growing pressure by educational institutions to allow them to run online classes for the students, the government set up the committee headed by noted educationist M K Sridhar.

The Minister told reporters that some schools wanted to run online classes, including for LKG and UKG students. It had also come to the government's notice that schools were reportedly charging hefty fees in the name of online teaching, he added.

"To address the concerns of parents, schools, and the future of the children, the committee was formed,"Kumar said. He further said that the government would study the recommendations and hold discussions with officials and various stakeholders before arriving at a decision.

The Education Department said that the committee, in its report, titled "Continuation of Learning in School Education of Karnataka: Guidelines During COVID-19 Pandemic for Technology Enabled Education and Beyond", has recommended teaching online or by using printed material. The committee suggested that children in the age group of three to six be taught online by way of story-telling, rhymes and games strictly in the presence of parents thrice a week just for one session a day For students from class one to three, it advised two periods a day and three days a week for online teaching.

Students from class three to five would have classes five days a week and two classes for 30 minutes a day. For students from class six to eight, there could be three classes a day for a duration of 30 minutes to 45 minutes each, while for students of class nine and 10 there would be four sessions a day between 30 and 45 minutes each.

The committee also suggested usage of Doordarshan and Akashwani for the government school children. Suresh Kumar said there were a few petitions filed in the Karnataka High Court regarding online teaching to the children.