Poonawalla Fincorp shares bounce back; close nearly 3 pc higher

In February 2021, Sebis system generated insider trading alerts related to the companys shares.

Shares of Poonawalla Fincorp recovered all its losses and closed the day nearly 3 per cent higher on Friday. In early trade, the stock declined 5 per cent to its lower circuit of Rs 163.55 on the BSE after its Managing Director Abhay Bhutada stepped down from the company following Sebi action. However, later, the stock came back to winning ways and closed the day with a gain of 2.79 per cent at Rs 176.95.

On the NSE also, it closed at Rs 176.45, a gain of 2.64 per cent after tumbling 4.97 per cent to Rs 163.35 in early trade.

Shares of Poonawalla Fincorp tumbled 5 per cent on Thursday.

Bhutada has resigned from the board with effect from September 16, 2021, Poonawalla Fincorp said in a statement on Thursday.

The board of directors of the company has accepted his resignation.

Poonawalla Fincorp Ltd Group CEO Vijay Deshwal will continue to run the operations of the firm, the statement added.

The Securities and Exchange Board of India (Sebi) on Wednesday barred Bhutada and seven other entities from the securities market for insider trading in the shares of the company.

The regulator also ordered impounding of wrongful gains worth over Rs 13 crore, through an interim order. In February 2021, Sebi's system generated insider trading alerts related to the company's shares.