Among individual stocks, Indiabulls Ventures (down 20 per cent to Rs 124), Indiabulls Real Estate (down 10 per cent to Rs 45.90) and Indiabulls Integrated Services (down 5 per cent to Rs 130) recorded a sharp fall. The other Indiabulls Group companies hit their respective lower circuit on the BSE on Monday with no buyers for these counters. On Friday, Indiabulls Group scrips ended lower in the range of 5 per cent to 16 per cent.
According to a Business Standard
report, the Delhi High on Friday agreed to hear a Public Interest Litigation (PIL) filed against Indiabulls Housing Finance
Limited, which has alleged fund diversion and accounting irregularities. A two-judge Bench led by Chief Justice D N Patel issued notice to Indiabulls Housing Finance, its promoters, the Reserve Bank of India (RBI), and the Ministry of Corporate Affairs and sought their response within two weeks. CLICK HERE TO READ FULL REPORT
Meanwhile, the Reserve Bank of India (RBI) has initiated Prompt Corrective Action (PCA) against Lakshmi Vilas Bank (LVB) on account of a high level of bad loans, the lack of sufficient capital to manage risks, a negative return on assets for two consecutive years, and high leverage, the Chennai-based lender said on Saturday.
The RBI move came days after the Delhi Police’s Economic Offences Wing registered a complaint against the board of LVB, alleging cheating and misappropriation of funds. Saturday’s development could be a major setback for the proposed merger of Indiabulls Housing Finance with LVB, which is awaiting the RBI’s nod. CLICK HERE TO READ FULL REPORT
Shares of LVB, too, hit their lower circuit of 5 per cent at Rs 34.75, also its multi-year low on the BSE. There were pending sell orders for 5.05 million equity shares on the NSE and BSE. The stock of private sector lender was trading close to its all-time low level of Rs 26.08 touched on March 4, 2009.