Volume Shockers: Manappuram Finance, Muthoot Finance

Under RBI's lens, gold finance firms have decided to form a self-regulatory organisation

Manappuram Finance and Muthoot Finance have surged more than 6% each on the back of huge volumes in early noon trades.

Manappuram Finance has rallied 10% to Rs 24.15 on the Bombay Stock Exchange (BSE). As many as 9.42 million shares, representing around 2% of free-float, have changed hands till early noon deals as against an of less than 2 million shares that were traded daily in past ten trading days on the NSE and BSE.

Muthoot Finance, on the other hand, is trading higher by 7% at Rs 127.15, with a combined 147,100 shares changing hands on the counter so far on both the exchanges. This is as compared to less than 40,000 shares that were traded daily in past two weeks.

According to PTI reports, leading gold finance companies have decided to form a self-regulatory organisation (SRO), under Reserve Bank of India's purview, which will frame a fair business practices code for the industry.

The SRO will represent about 85% of gold loan portfolio; the report suggests quoting Muthoot Finance's Managing Director George Alexander Muthoot.