SKS Microfinance falls after IRDA imposes Rs 50 lakh penalty

SKS Microfinance has slumped 2.39% at Rs 143.20 as insurance regulator IRDA imposed Rs 50 lakh penalty on the company which collected extra funds, apart from the premium, as a corporate insurance agent without proper disclosure to policy-holders.

Irda has asked SKS to remit the penalty within 15 days from the date of receipt of the order. According to the group insurance guidelines, an MFI cannot collect from its member’s amounts that are higher than the policy premium charged by the insurance company. MFI has not collected any ‘premium’ amount from its members but it collected one per cent of the loan amount as DRF fee.

In the intraday deal, the stock opened at Rs 142.10 and made a low of Rs 141.20. Around 1,50,000 shares were traded in BSE & NSE.