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Gitanjali Gems Shares Plunge 35% In Two Days After PNB Fraud

Gitanjali Gems has came under scanner of various investigating agencies following Punjab National Bank's Rs 11,000 crore fraud, reports said.

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Gitanjali Gems Shares Plunge 35% In Two Days After PNB Fraud

Shares of Gitanjali Gems plunged nearly 20 per cent on Thursday.


Shares of Gitanjali Gems declined nearly 20 per cent today to Rs 37.55 on the Bombay Stock Exchange (BSE), extending its two-day loss to nearly 35 per cent. Shares of Gitanjali Gems had plunged nearly 20 per cent on Thursday after the company came under the scanner of various investigating agencies following Punjab National Bank's over Rs 11,000 crore fraud. Meanwhile, PNB shares were trading 2.5 per cent lower today at Rs 125.20. PNB shares had also plunged in the previous two sessions after the fraud came to the light. 

Meanwhile, Bombay Stock Exchange has sought clarifications from Gitanjali Gems on reports that "Big jewellers Gitanjali, Ginni, Nakshatra under scanner". A Press Trust of India had earlier reported that major jewellers Gitanjali, Ginni and Nakshatra are under the lens of CBI, ED in PNB's Rs 11,000 crore fraud. The state lender said that fraudulent transactions took place in one of its branches in Mumbai for the benefit of a few select account holders with their apparent connivance.

BSE has also sought clarification from Gitanjali Gems Ltd with respect to news article titled "ED raids offices of Nirav Modi, PNB and Gitanjali gems".

Punjab National Bank, India's second-largest state-run lender, on Thursday sought to soothe investors after the discovery of the fraud sent its shares plunging and raised fears about the scale of fraud in the sector. Investigators launched raids across Mumbai and New Delhi, targeting offices and homes linked to Nirav Modi, a billionaire jeweller and diamond merchant the bank has accused of being at the centre of the fraud.

PNB executives said the lender was working with regulators to determine how the largest fraud that took place in India could have gone undetected for years.

PNB said two junior officials at one of its branches in Mumbai had issued "letters of undertaking" to get overseas branches of other lenders to extend credit to "a few select account holders". Letters of undertaking (LoUs) are issued by a bank giving some sort of a guarantee on behalf of a company. Other lenders give credit based on the LoU.  (With Agency Inputs)


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