Shares of the Manappuram Finance and Muthoot Finance slipped on Tuesday after the Reserve Bank of India disallowed banks to finance purchase of gold in any form, including primary gold, gold bullion, gold etf.
Manappuram shares was trading lower by 1.09% at Rs 31.70, after touching an intra-day low of Rs 31.10 at 12.35 pm IST.
Shares of Muthoot Finance was trading at Rs 204, lower by 0.85%. It touched an intra-day low of Rs 200.
On Monday, the RBI said that no advances should be granted by banks against gold bullion to dealers/traders in gold if, in their assessment, such advances are likely to be utilised for purposes of financing gold purchase at auctions and/or speculative holding of stocks and bullion.
This move came due to the significant rise in imports of gold in recent years which is a cause of concern as direct bank financing for purchase of gold in any form viz.,bullion/primary gold/jewellery/gold coin etc.