India’s Manappuram Finance says enforcement action against promoter, not company

MUMBAI, Might 5 (Reuters) – Indian non-bank lender Manappuram Finance Ltd (MNFL.NS), in a notification to inventory exchanges on Friday, clarified that the enforcement motion in opposition to its promoter is just not linked to affairs of the listed entity.

On Thursday, the Enforcement Directorate, India’s monetary crime combating company, stated that it has frozen belongings price 1.43 billion rupees ($17.50 million) after a search performed on the firm’s registered workplace.

The belongings that had been frozen embrace shares and a few paperwork had been seized, the company stated.

Manappuram’s promoter, V.P. Nandakumar, stated within the notification that the probe was not associated to the corporate however a non-public entity known as Manappuram Agro Farms, which is not in existence.

Nandakumar stated the company froze Manappuram Finance shares price about 20 billion rupees that he held, however assigned them a price of about 1.40 billion rupees, including he was reviewing authorized choices within the matter.

Shares of the corporate had been buying and selling 13% decrease at 10.38 a.m. on Friday, whereas the benchmark Sensex was down 0.3%

Reporting by Ira Dugal; Modifying by Savio D’Souza

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