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NMC Founder Shetty Forced Out Amid Probe Into Shareholding (4)

Feb. 17, 2020, 3:03 PM

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, which 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 in the FTSE 100 Index this year, fell Monday morning and then rebounded, gaining as much as 2.3%.

“The share ownership and pledge ...