PB Fintech shares fall despite CEO Yashish Dahiya denying resignation rumours

Shares of PB Fintech fell nearly 6% in intraday trade on Thursday, September 17, amid market speculation that Chairman, Executive Director and Group Chief Executive Officer Yashish Dahiya could resign from the company. The Policybazaar-owner issued its clarification through an exchange filing after market hours.

The development was first reported by CNBC-TV18 in the morning, when Dahiya told us that the speculation was false and that he “Will continue to remain in the same role in the company.”

 

PB Fintech denies CEO resignation speculation

In its exchange filing, PB Fintech categorically denied the market speculation that Dahiya intended to resign or step down from his position, calling it “false and baseless.”

The company said Dahiya had “expressly confirmed that he has no intention of resigning, stepping down or relinquishing his responsibilities” and would continue to lead PB Fintech in his present capacity.

“Based on the confirmation received from Mr. Dahiya, no change in his role or responsibilities is proposed or under consideration,” the company said.

PB Fintech added that its business strategy and growth plans would continue to be executed under Dahiya's leadership, along with the senior management team.

The company also said there was “no undisclosed material event or information” concerning any change in Dahiya's role that required disclosure under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations.

Bernstein sees limited impact from commission norms

The stock's decline came even as global brokerage Bernstein said PB Fintech is likely to see a limited impact from proposed changes to insurance commission norms.

Bernstein said the regulatory overhang around the company is resolving. The Insurance Regulatory and Development Authority of India (IRDAI) is expected to issue a consultation paper on insurance commissions and distribution soon, according to sources.

The proposed consultation paper is expected to cover commission and expense limits for insurance products. Banks are likely to face more significant commission reductions, while retail insurance products could see smaller cuts, according to the report.

Bernstein said the final changes to commission norms would be decided in consultation with the industry, with a focus on hard-bundled products sold by banks and lower cuts for retail life insurance products.

“Final cuts on commission norms will be decided in conjunction with the industry,” the brokerage said.

Bernstein expects the regulatory overhang to “resolve amicably”, with a limited impact on PB Fintech.

The company has now formally confirmed that Dahiya will continue as Chairman, Executive Director and Group Chief Executive Officer, with no change in his role or responsibilities under consideration.

The stock hit an intraday low of ₹1,718.10, before recovering some ground to end 3.8% lower at ₹1,758. Today's losses have turned the stock negative for the year, with the year-to-date returns now falling to negative 3%.

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