Following strict measures by the Reserve Bank of India (RBI), shares of IIFL Finance and JM Financial Products Ltd witnessed sharp declines on the stock exchanges. IIFL’s shares plunged 40% in two sessions after RBI directed the NBFC to halt gold loan operations, impacting its significant loan portfolio. JM Financial’s shares also tumbled up to 20% after RBI’s order to cease financing against shares and debentures. Despite reassurances from both companies’ management regarding addressing RBI’s concerns, investors remained wary. Meanwhile, IIFL Finance is set to receive a $200 million investment from Fairfax India to bolster liquidity amid the regulatory restrictions.
RBI’s Actions Lead to Shares Plummeting for IIFL Finance and JM Financial
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