Gitanjali Gems fall continues; stock tanks 52% in one week

ED raids Gitanjali's showroom at Durgapur, West Bengal
Gitanjali Gems is locked in lower circuit for the fourth straight trading sessions, down 10% at Rs 30.45 on the BSE and Rs 30.40 on the National Stock Exchange (NSE) with no buyers were seen on the counter.

Till 10:27 am; a combined 39,828 shares changed hands on the counter and there were pending sell orders for 16.62 million equity shares on the NSE and BSE. The stock is trading close to its all-time low of Rs 29.95 recorded March 1, 2016 on BSE in intra-day trade.

In past one week, the stock of integrated diamond and jewellery manufacturers and retailers has tanked 52% from Rs 62.85 on February 12, 2018, after the state-owned bank said on last week it had been defrauded of about Rs 114 billion by jeweller Nirav Modi, his maternal uncle Mehul Chinubhai Choksi, the promoter of Gitanjali Gems, and other relatives through a clutch of companies their own.

Meanwhile, three key officials, Chief Financial Officer (CFO), VP- Compliance and Company Secretary and a board member of Gitanjali Gems resign citing 'conscience', personal reasons.

In an email dated February 13 to chairman and managing director Mehul Choksi, Pankhuri Warange, company secretary and compliance officer of Gitanjali Gems, wrote: “It is with regret that I submit my resignation and relinquish the position of company secretary and compliance officer of Gitanjali Gems.”

Warange alleged lack of disclosures from the company management under the Compliance Act, 2013, and the SEBI (Listing Obligation and Disclosure) Requirements, 2015, as major hurdles in his discharging certain statutory duties and responsibilities towards stakeholders.

“I notice that the key managerial persons (KMP) of the company relinquished their position and there is no one to organise a board meeting in the company or giving clarifications. Accordingly I feel that there is no purpose in waiting till February 28, 2018 and hence submit my resignation from the position of independent director of the company with immediate effect,” Krishnan Sangameswaran said in a letter dated February 18, 2018.

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