Manappuram Finance tumbles on reports of Sebi notice for insider trading

Manappuram Finance fell 4.90% to 130.90 at 14:21 IST on the BSE after media reports suggested that the stock market regulator issued a notice to the company alleging insider trading.

Meanwhile, the S&P BSE Sensex was down by 65.95 points, or 0.17% to 39,463.77

On the BSE, 11.22 lakh shares were traded in the counter so far compared with average daily volumes of 3.41 lakh shares in the past two weeks. The stock had hit an intraday high of Rs 136.20 and hit an intraday low of Rs 123.09. The stock hit a 52-week high of Rs 142 on 6 June 2019 and a 52-week low of Rs 66.40 on 8 October 2018.

According to media reports, the Securities Exchange Board of India (Sebi) has served a show-cause notice on the company's top management for breach of insider trading regulations. According to the Sebi notice, Manappuram Finance discussed the unpublished and price-sensitive information (UPSI) with five asset management companies (AMCs) on 18 and 19 March 2013, during the conference call to market participants, before this was disclosed to the stock exchanges, the reports added.

On a consolidated basis, the company reported 43% increase in net profit to Rs 258.34 crore on 22.4% increase in total income to Rs 1103.32 crore in Q4 March 2019 over Q4 March 2018.

Manappuram Finance is one of India's leading gold loan NBFCs.

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