Anil Khandelwal, former chairperson of Bank of Baroda, resigned from the board of Rashi Peripherals Ltd, an IT hardware distribution company, over governance concerns. His resignation marks at least the second instance this year where an independent director has stepped down citing similar issues. Following the announcement, Rashi Peripherals' stock fell by 10%, according to livemint.com.
Khandelwal's resignation letter highlighted governance issues related to the appointment of directors and acquisitions managed by firms linked to independent directors. These concerns prompted his decision to leave the board, signaling ongoing challenges within the company's corporate governance framework. The company has not publicly detailed responses to the resignation or the specific governance matters raised.
The resignation underscores growing scrutiny of corporate governance practices in Indian companies, especially those with independent directors tasked with oversight roles. Rashi Peripherals, a notable player in IT hardware distribution, has now faced multiple independent director resignations this year, which could affect investor confidence. The 10% stock decline reflects market sensitivity to governance risks, a factor increasingly influencing shareholder decisions in India’s corporate sector.
Rashi Peripherals’ next quarterly earnings report, due in late October 2026, will be closely watched by investors for any updates on board composition and governance reforms. The company’s stock performance since the resignation will also be monitored to assess investor reaction to these developments.