Panel to decide on religion tag for Lingayat

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, Jan 3: Three advocates were appointed additional judges of the Karnataka High Court.

A Law Ministry notification, issued here on Friday said Maralur Indrakumar Arun, Engalaguppe Seetharamaiah Indiresh and Ravi Venkappa Hosmani have been appointed as additional judges of the high court on Thursday. The newly appointed Judges will continue in their post for a period of two years from the date they assume charge.

While the names of advocates Arun and Indiresh were recommended by the Collegium on March 25 last year the name of Advocate Hosmani was recommended by the Collegium on October 4.

Bengaluru, Feb 17: The Karnataka govt has set up an exclusive helpline 104 'Arogya Sahayavani' for Coronavirus assistance to people with recent travel history to China and other affected countries, a statement said here on Monday.

According to the statement, the Karnataka Department of Family and Welfare set up the exclusive helpline 104, 'Arogya Sahayavani' on Sunday. People, who recently traveled to China and other affected countries and who have developed symptoms of Covid-19 virus are requested to immediately contact 104–Arogya Sahayavani or the health authorities and provide all necessary details in order to take precautionary measures.

The World Health Organization (WHO) has declared the recent novel Coronavirus (COVID 2019) as an International Public Health Emergency of International Concern.