Manappuram Finance shares tank 20% on RBI warning
Shares of Manappuram Finance tumbled by 20% to their lowest permissible limit for the day today, amid concerns over Reserve Bank of India warning the company against accepting public deposits.business Updated: Feb 07, 2012 17:15 IST
Shares of Manappuram Finance tumbled by 20% to their lowest permissible limit for the day on Tuesday, amid concerns over Reserve Bank of India warning the company against accepting public deposits.
Frenzied selling dragged down the company's shares as the stock lost 19.96% to touch the lower circuit limit at Rs 45.50 on the BSE.
At the NSE also, the stock plunged 19.95% to Rs 45.15.
The Reserve Bank, in a press release posted on its website, has cautioned Manappuram Finance against accepting public deposits as the firm has converted itself into a non-deposit taking NBFC.
The central bank said it has come across instances of acceptance of deposits by the Kerala-based firm. RBI further said that acceptance of deposits either by Manappuram Finance or by its group company Manappuram Agro Farms (MAGRO) is punishable with imprisonment.
Meanwhile, Manappuram in a filing to the BSE said that the "board of directors of the company will meet on February 10, at Valappad in Thrissur, Kerala, to discuss the press release of the RBI."