Muthoot Finance and Manappuram Finance shares tank up to 9% after RBI advisory
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Shares of gold financiers Muthoot Finance and Manappuram Finance were down between 8-9% on BSE after the Reserve Bank of India (RBI) sent the companies an advisory concerning cash disbursal of loans. Shares of Muthoot fell up to Rs 1,510 while Manappuram tumbled to Rs 165.15. RBI had reportedly asked NBFCs to strictly adhere to the Income Tax Act provision on cash disbursement of loans wherein no NBFC should disburse loan amount in excess of Rs 20,000 in cash. “Please refer to provisions of Section 269SS of Income Tax Act, 1961, which stipulates that no individual can receive more than 20,000 rupees as loan amount in cash,” the letter from the Central Bank stated. "Consequently, no NBFC should disburse loan amounts in excess of 20,000 rupees in cash."ALSO READ | Hero MotoCorp shares surge 6% after Q4 results. Should you buy, sell or hold?Earlier in March, the central bank had also prohibited IIFL Finance from disbursing gold loa...