Proxy advisory firm urges Raymond’s independent directors to probe assault allegations

(Reuters) – Institutional Investor Advisory Services (IIAS), an Indian proxy advisory firm, on Tuesday urged the independent directors of textile company Raymond Ltd to launch an investigation into the allegations of assault against its managing director.

According to local media reports, Nawaz Modi Singhania – the wife of Managing Director Gautam Singhania and a board member – alleged that she and her daughter were physically assaulted by Singhania in September 2023.

CNBC TV 18 reported that Singhania has written to the company’s board of the company assuring smooth functioning of business amid the ongoing separation with his wife.

Reuters has not independently seen the letter. An email sent by Reuters to a company spokesperson was not answered immediately.

Raymond’s shares fell on Tuesday for a tenth straight session and have lost over 16% during the period. The share slump started on Nov. 13, when Singhania announced separation from his wife on social media platform X, formerly known as Twitter.

IIAS said in an open letter that the independent directors need to communicate with investors and other stakeholders, assuage their concerns and “articulate a course of action they have taken following these public allegations”.

“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 said.

(Reporting by Jayshree P Upadhyay; Editing by Saumyadeb Chakrabarty)