Manappuram Finance tanks 12% on reports of ED searches at multiple premises

The shares of Manappuram Finance plunged by almost 12% as the Enforcement Directorate (ED) conducted searches at several premises of the non-banking finance company in Kerala. The ED is investigating the company for alleged money laundering and contravention of Reserve Bank of India guidelines regarding the collection of public deposits worth over INR 150 crore. The agency is gathering evidence, including statements from executives and documents, pointing to “large-scale” cash transactions. Manappuram Finance’s stock price has remained almost stagnant over the past year and declined by approximately 10% this month, although it had recovered from mid-June’s low of INR 80 to hover around the INR 90 range.