PNB fraud takes sheen out of jewellery stocks; Gitanjali Gems, PC Jeweller dip up to 24%

Gitanjali Gems tanked as much as 18.94 per cent, hitting its 52-week low of Rs 47.50 on the BSE. Image source: Reuters

Jewellery stocks such as PC Jeweller and Gitanjali Gems sank up to 24 per cent after the PNB fraud issue accentuated and cast its shadow on a couple of banks and jewellery firms too.

Gitanjali Gems tanked as much as 18.94 per cent, hitting its 52-week low of Rs 47.50 on the BSE, while PC Jeweller dipped a whopping 24 per cent to Rs 303.

The fall came following the news that the market regulator Sebi is likely to probe possible disclosure lapses by banks and other listed companies, including several jewellery firms, that have come under the scanner in connection with the whopping Rs 11,000 crore fraud detected at state-owned Punjab National Bank (PNB).

Besides, the watchdog and the stock exchanges would analyse trading data of these companies and their top officials, some of whom are already under the scanner for insider trade and other violations, reported PTI.

The latest development, experts believe, is expected to give further push for the regulator's proposal to mandate listed companies to disclose loan defaults within a day of happening. The proposal has been put off apparently due to reservations expressed by the banking industry.

PNB on Wednesday disclosed that it has detected some fraudulent transactions with financial implication of about Rs 11,346 crore and the matter has been referred to law enforcement agencies for the recovery.

ALSO READ: PNB cautions other banks about modus operandi of fraud

"Four big jewellers -- Gitanjali, Ginni, Nakshatra and Nirav Modi -- are under scanner. The CBI and Enforcement Directorate is looking at their arrangements with various banks and end use of money," a senior official of a public sector bank said, reported PTI.

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PNB fraud takes sheen out of jewellery stocks; Gitanjali Gems, PC Jeweller dip up to 24%

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