Gitanjali Gems Shares Price Close 20% Lower On PNB's Rs 11,000 Crore Fraud

After PNB Fraud linking Nirav Modi, Gitanjali Gems shares plunged 19.97% to Rs 46.90 on Thursday against the previous session's closing of Rs 58.60 on the BSE

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Gitanjali Gems Shares Price Close 20% Lower On PNB's Rs 11,000 Crore Fraud

After PNB fraud, BSE asked Gitanjali Gems for an explanation

Gitanjali Gems shares plunged 19.97% to close at Rs 46.90 on Thursday against the previous session's closing of Rs 58.60 on the BSE. This happened in the wake of media reports linking the jewellery brand to the PNB fraud that came to the media attention on Wednesday. Following this, the BSE has asked the listed company for an explanation seeking its stand on the issue.

"The stock exchange has sought clarification from Gitanjali Gems on Thursday with reference to news appeared dated February 14 quoting "Big jewellers Gitanjali, Ginni, Nakshatra under scanner," reads the stock market statement. It is noteworthy that the company has even postponed the board meeting that was scheduled to take place on Wednesday.

The company had announced the same in a stock market filing.

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"Please be informed that due to certain pressing contingencies the quarterly results of the Company couldn't be finalized and the 15th Board meeting of Company scheduled to be held on Wednesday, February 14, 2018 at 12 noon at B - 3, 3rd Floor, Laxmi Towers, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051 to inter alia review the un-audited Financial Results of the Company for the quarter ended December 31, 2017 has been postponed," said the company statement on Tuesday.

Last week, PNB had lodged an FIR with the CBI stating that fraudulent LoUs worth Rs. 280.7 crore were first issued on January 16. At the time, PNB had said it was digging into records to examine the magnitude of the fraud. This could be the biggest banking fraud in India as its quantum was bigger than an estimated 9,000 crore scam at erstwhile Satyam computers. In 2015, Bank of Baroda -- another public sector bank -- had brought to light a scam in which two Delhi-based businessmen cheated it of Rs. 6,000 crore (slightly less than $1 billion at that time).

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