JSPL tumbles on buzz Deutsche Bank files suspicious activity reports

Jindal Steel & Power (JSPL) dropped 3.19% to Rs 169.70, following reports that Deutsche Bank Trust Company Americas filed Suspicious Activity Reports on fund transfers by the company for two consecutive years.

The media reports were based on leaked suspicious activity reports (SARs) filed by banks and other financial firms with the US Department of Treasury's Financial Crimes Enforcement Network (FinCen).

According to reports, SARs showed that JSPL received $2.48 million in 2015 and $16.8 million in 2016. During the period, the company sent money to firms based in Mauritius, Germany, and the UK and received funds from firms in Dubai and Switzerland.

JSPL, however, clarified to the bourses on Monday that all transactions entered into by the company were part of routine business activities and all the transactions had proper underlying assets. The company had fully complied with all the extant regulatory guidelines at the time of these transactions. JSPL does business transactions with numerous traders who buy steel & pellets from the company, as well as procure raw materials for the company. All such transactions are done strictly within the required legal framework and as per the law of the land. As a responsible corporate house, we adhere to all legal requirements strictly.

Shares of JSPL have surged 173.26% from 52-week low of Rs 62.10 hit on 3 April 2020.

JSPL reported a consolidated net profit of Rs 267.58 crore in Q1 June 2020 as against net loss of Rs 87.40 crore in Q1 June 2019. Consolidated net sales fell 6.7% year-on-year (YoY) to Rs 9,278.77 crore during the quarter.

JSPL is a steel producer with presence in power generation and mining.

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