Manappuram Fin hits lower circuit

Manappuram Finance is deep in the red today. The stock is down 10% at Rs.15.70,  a new 52-week low and it has been frozen on the 10% lower circuit, with over 3.35 lakh sellers on the counter.

The stock hit the lower circuit on news that the private equity investors have barred the company from using its branches to accept money for its chit funds controlled by its promoter, VP Nandkumar. This was after audit firm, KPMG indicated that a part of the company’s network. The firm stated that that less than 5% of the company's branches were collecting money from the public for chit funds controlled by Mr.Nandakumar. 

Last year RBI had cautioned the company and Manappuram Agro Farm from accepting deposits from the public, either at its office or branches. The company is classified as a non-deposit taking NBFC.