The Reserve Bank of India’s (RBI) stringent actions against IIFL Finance and JM Financial Products Ltd have resulted in a significant decline in their share prices on the stock exchanges. Following the RBI’s directive to cease gold loan activities, shares of IIFL plummeted by 40% over two sessions to reach a new 52-week low. Global brokerage firm Jefferies downgraded IIFL’s rating and slashed its target price, citing potential profit impacts from the gold loan ban. Meanwhile, JM Financial shares also dropped by up to 20% after the RBI instructed the investment banking firm to halt financing against shares and debentures.