The stock of Manappuram Finance jumped 8.35 per cent, rebounding smartly after a 20-per cent plunge on Tuesday following a clarification issued by the company on public deposits.
On Monday, RBI issued a warning to the company against accepting any public deposits. Mr V.P. Nandakumar, Proprietor of Manappuram Agro Farms, said that the firm had accepted public deposits in good faith, believing that there was no violation of the Reserve Bank of India Act of 1934.
As on January 31, Manappuram Agro Farms had a total liability, including public deposits, of Rs 140 crore. With the RBI stating that acceptance of deposits by the firm is non-compliant with current regulations, Manappuram Agro Farms has stopped accepting public deposits with immediate effect, he said.
Moreover, Manappuram Agro Farms has undertaken to repay all outstanding deposits at the earliest possible, in any event, as and when the deposits mature, or prematurely, at the request of the depositors. It has stopped accepting any fresh deposits or renewal of matured deposits.
Mr Nandakumar also confirmed that henceforth Manappuram Agro Farms will not share any resources with Manappuram Finance Ltd other than the administrative support required to repay public deposits collected through it.