Shares of Edelweiss Financial Services Ltd. tumbled nearly 16% to record their worst fall in over four years on Thursday after the Reserve Bank of India put severe business restrictions against two of the group's companies, owing to material supervisory concerns.
"We are reviewing the order and will address the observations mentioned in the RBI order," the company said in a statement.
There will be no material impact on the resolution and recovery efforts, which would continue normally, it said. "We assure all our stakeholders that we are taking immediate steps to address the concerns raised by the RBI and to align our operations with regulatory expectations," it said.
Shares of the company fell as much as 15.82% to Rs 65.20 apiece, the lowest level since April 1. It pared losses to trade 12.33% lower at Rs 68 apiece as of 9:39 a.m. This compares to a 0.42% decline in the NSE Nifty 50.
The stock has fallen 12.40% on a year-to-date basis but risen 91.83% in the last 12 months. Total traded volume so far in the day stood at 1.69 times its 30-day average. The relative strength index was at 33.76.
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