OnMobile during review of its corporate governance procedures identified weaknesses in some processes and initiated steps to rectify all the weaknesses, the company said in a statement.
"Recognizing that these weaknesses took place during his tenure, Arvind Rao has submitted his resignation from the position," it added.
At 10.10 a.m., the stock traded 6.25 per cent higher at Rs 35.70 on the BSE, while the broader Sensex was up 0.4 per cent to 17,465. Incubated at Infosys, the company's stock price has plunged 44 per cent over the last three months, while the BSE 200 index has been flat.
On Monday, Goldman Sachs Investments Mauritius had sold 6.55 lakh shares in OnMobile Global for Rs 2.22 crore through open market transaction.
OnMobile's co-founder and executive director Mouli Raman has been appointed as the interim managing director.
(With inputs from PTI)