Manappuram Finance tanks 10% after SEBI notice for insider trading

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Shares of Manappuram Finance tanked as much as 10 percent intraday on June 7 after SEBI issued a notice to the company alleging insider trading.

According to a report in Business Standard, the market regulator issued a show-cause notice to five Asset Management Companies (AMCs) including SBI Fund Management, ING Mutual Fund (now Birla Sunlife), BNP Paribas, Ambit Capital and Manappuram on charges of using 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.

The share of the company had hit an all-time high of Rs 142 on June 6 and has rallied around 48 percent in calender year 2019.

At 1155 hrs, Manappuram Finance was quoting Rs 133.50, down 3.01 percent on the BSE.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.