Raymond: India proxy advisory firm asks independent directors to probe assault charges against MD

INDIA'S proxy advisory firm Institutional Investor Advisory Services (IiAS) on Tuesday (28) requested the independent directors of the country's textile giant Raymond Ltd to begin a probe into the allegations of assault against its managing director Gautam Singhania.

The company has been rocked by news of separation between Singhania and his wife Nawaz Modi Singhania, also a board member, who brought a number of allegations against the former including physical assault in September.

According to a report by CNBC TV18, Singhania wrote to the company's board saying the business was running smoothly amid the personal trouble. The 58-year-old businessman announced about his separation with Modi, with whom he was more than three decades, on social media a day after Diwali earlier this month.

Read: Raymond patriarch devastated as family dispute takes toll on company

Modi brought her allegations soon after the announcement was made.

Raymond's shares plummeted for the 10th straight session on Tuesday and have lost more than 16 per cent during the period. The slump started on November 16 when Singhania made the announcement.

The independent directors are required to communicate with investors and other stakeholders and assuage their worries and "articulate a course of action they have taken following these public allegations", the IiAS said in an open letter, Reuters reported.

"In the interest of the company and safeguard the interests of a larger set of stakeholders, we urge you to undertake an independent investigation into the allegations of both, assault and CEO excesses," IiAS added, the report said.