SKS Microfinance has tanked 5% to Rs 73.45, also its historic low market price, on reports that Insurance Regulatory and Development Authority (IRDA), the insurance regulator has found irregularities in the company’s handling of insurance of its clients.
“The irregularities included receiving the cheques of death claims from its insurers on its name, which is illegal. The only listed micro-finance institution in the country had also “collected” higher commissions than permitted by the insurance regulator while selling the insurance policies,” the report suggests.
SKS deals with about 10 insurance companies in both life and non-life for various purposes including distribution of products.
The stock opened at Rs 77, have seen a combined 213,001 shares changing hands on the counter so far on the NSE and BSE.
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