SELL MUTHOOTFIN FUTURE 1190 TARGET 1170-1140 SL PAID
“The interaction was purely in the nature of information sharing, and the Company and its officials have extended full cooperation to the authorities,” the company said in response to news agency PTI report.
The report, citing police officials said Muthoot Finance branch managers lured investors with the promise of returns in the range of 8 to 12 per cent on certain fixed deposits and NCDs, but “diverted” the funds to Srei Equipment Finance. This company, PTI said citing sources, was “misrepresented” as a sister concern of the Muthoot group.
Muthoot Finance said for NCD issuances of Srei group firms, Axis Trustee Services acted as the Debenture Trustee, Karvy Computershare was the Registrar to the Issue and the NCDs were rated ‘BWR AA+/Stable’ by Brickwork Rating.
Further, the Lead Manager for the issue of Srei Infrastructure Finance was SPA Capital Advisors Limited, and Lead Managers for the issue of Srei Equipment Finance Limited issue were Edelweiss Financial Services Limited, A. K. Capital Services Limited , IIFL Holdings Limited, SPA Capital Advisors Limited, Tipsons Consultancy Services Private Limited and Trust Investment Advisors Private Limited.
“Muthoot Securities Limited (MSTL), is a SEBI Registered Stock Broking Company where promoter family of Muthoot Finance Ltd holds 82 per cent shareholding and Muthoot Finance Ltd holds 18 per cent shareholding. MSTL acted as one among several brokers in the above mentioned Public Issue of NCDs of Srei Cos for distribution of NCDs. The Muthoot Group employees were allowed to source leads from their interested customers,” Muthoot Finance said.
“It is important to note that MSTL was one among several SEBI registered brokers that undertook distribution of NCDs of Srei Cos as well as bidding in stock exchange platform and submission of cheque and application forms with the Collection Bank,” it added.
There has never been any commercial or business relationship between Muthoot Finance and Srei firms or any of its directors or promoters, the gold loan financier said, adding that assertion or implication to the contrary is inaccurate and without basis.
The RBI had superseded boards of Srei Infrastructure Finance and Srei Equipment Finance in October 2021 on account of governance concerns, financial irregularities and defaults in their various payment obligations. Government backed NARCL in 2023 won the bid to acquire these two Srei group companies via the IBC route.
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