IIFL Finance shares plunged 20 per cent for a second day while JM Financial shares slided 19 per cent amid various restrictions by the Reserve Bank of India (RBI).
RBI on Tuesday barred IIFL Finance from issuing gold loans, pushing the company's shares to its 52-week low as it hit the lower circuit at Rs 383.20 on the National Stock Exchange. The RBI action came after it found discrepancies in the company's functioning.
Brokerage firm Jefferies downgraded IIFL Finance to 'hold' from 'buy', cutting the target price from Rs 765 to Rs 435.
On Tuesday, the stock had dived 20 per cent to Rs 478.50, hitting the lower circuit, on the BSE, and slumped 19.99 per cent to the lower circuit at Rs 477.75 on the NSE.
RBI also imposed restrictions on JM Financial on Tuesday, barring the company from providing any financing against shares and debentures, including sanction and disbursal of loans against initial public offering.
The central bank said the action comes after it observed serious deficiencies with respect to loans sanctioned by the company for IPO financing as well as NCD subscriptions.
