Manappuram Finance slips 10% on Sebi notice in insider trading case

Manappuram Finance
Shares of Manappuram Finance slipped 10 per cent in the intra-day trade to quote Rs 124 apeice on the BSE on Friday after markets regulator, Securities and Exchange Board of India (Sebi), issued notice to five Asset Management Companies (AMCs) alleging insider trading in favour of the company. 

Business Standard reported on June 7 that SBI Fund Management, ING Mutual Fund (now Birla Sunlife) and BNP Paribas were among the five AMCs who were charged with the use of price-sensitive information for trading in the scrip of Manappuram Finance (MFL) in March 2013.

"During 2013, in two trading days, between March 19 and March 20, the stock of Manappuram Finance tanked 31 per cent after the company shared information about large loan losses with analyst of Ambit Capital," the report said.

Notices have also been issued to Saurabh Mukherjea, former chief executive officer of Ambit Capital, and to Manappuram Finance and its top management, the report added. CLICK HERE TO READ FULL REPORT

Manappuram Finance had hit an all-time high of Rs 142 on Thursday, June 6, 2019 in the intra-day trade. Thus far in the current calendar year 2019, the stock has rallied 48 per cent, as compared to a 10 per cent rise in the S&P BSE Sensex till yesterday.

At 10:07 am, the stock trimmed losses and was trading 5 per cent lower at Rs 131 on the BSE, against a marginal 0.04 per cent decline in the benchmark index. The trading volumes on the counter nearly doubled with a combined 11.6 million shares changing hands on the NSE and BSE so far.