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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.

Bengaluru, Mar 15: All 21 Madhya Pradesh MLAs from Jyotiraditya Scindia's camp, who were lodged here at Prestige Golfshire Club, have been shifted to Ramada hotel in Yelahanka ahead of Monday's floor test in the state assembly.

In view of their arrival, the concerned authorities have strengthened security outside the hotel.

Following the exit of Scindia from Congress, these MLAs claimed to have resigned from the state Legislative Assembly.

On March 11, Congress sent two of its leaders -- Sajjan Singh Verma and Govind Singh -- to Bengaluru in order to pacify some of these rebel MLAs.

Most of the rebel MLAs are perceived close to Scindia and were apparently unhappy at Scindia being "ignored" in the party.
Meanwhile, Madhya Pradesh Congress MLAs, who arrived in Bhopal from Jaipur today morning ahead of the floor test in the Assembly on Monday, have been shifted to Courtyard by Marriott Hotel.

These MLAs were accompanied by senior Congress leader Harish Rawat, who exuded confidence of Kamal-Nath led government winning floor test in the Assembly.

Both Congress and BJP have issued whips to all its MLAs for the legislative assembly session in Madhya Pradesh, which is scheduled to be held from March 16 to April 13.

On Saturday, Madhya Pradesh Governor Lalji Tandon had directed that a floor test will be held in the assembly on Monday.

Bhopal, Mar 10: Senior Congress leader Digvijay Singh on Tuesday parried questions on the exact number of MLAs supporting the party in Madhya Pradesh amid a political crisis triggered by the resignation of Jyotiraditya Scindia and 14 MLAs loyal to him.

Repeating his allegation that the BJP was trying to destabilise the Congress-led government, Singh told reporters that the BJP had arranged three chartered planes for Bengaluru on Monday to fly out some MLAs loyal to Scindia.

"We want to know why Bengaluru is used every time to destabilise governments?" he questioned.

When asked about the number of MLAs supporting the Congress in the current political scenario, Singh only said, "Just wait".

He said an atmosphere of uneasiness has been prevailing in the BJP since the Kamal Nath government started cracking a whip on various mafias.

"We (the state government) are exposing Vyapam scam, e-tendering scam, Madhyam scam. In the honey-trap case, BJP men were found to be involved. This will be exposed," he said.

The political crisis in Madhya Pradesh precipitated with the resignation of Jyotiraditya Scindia over his apparent marginalisation in the state politics. Following Scindia's suit, 14 legislators loyal to him have sent their resignation letters via e-mail to Madhya Pradesh Raj Bhavan.

Scindia was subsequently expelled from the Congress by party president Sonia Gandhi.

Speculation that the Guna royal might join the BJP gained ground after he met Prime Minister Narendra Modi in Delhi this morning.