Gitanjali Gems hits lower circuit after RBI tightens gold import norms

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Shares of Gitanjali Gems plunged nearly 5 per cent, hitting fresh 3-years low, in early trade on Bombay Stock Exchange (BSE) after RBI realigned fresh restrictions on gold imports, making it tougher for domestic consumption and pushing exporters to bring home their dollar earnings.

The central bank in a notification has mandated that banks and bullion trading houses must retain 20 per cent of every lot of imports of the metal at customs warehouses.

Weighed down by development, stocks of the company locked in lower circuit for 22nd straight trading sessions.

The stocks has eroded more than 50 per cent of its market cap after the market regulator Sebi suspended the trading activities of 26 entities, including the company's promoter Mehul Choksi, and firms linked to Prime Broking, as part of a probe into suspected market manipulations.

Continuing its dwindling performance, shares of the company declined as much as 4.98 per cent and locked in lower circuit at Rs 99.20 a piece on the BSE.

In a similar fashion, shares of the company dipped 4.99 per cent to Rs 98.00 a piece on National Stock Exchange.

Meanwhile, the broader benchmark Sensex was quoting at 20,320.26, up 168.67 points or 0.84 per cent at 10:30 hours.

Read more about: gitanjali gems
Story first published: Tuesday, July 23, 2013, 12:53 [IST]
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