M&M Financial Services’ stock fell 8% in early trading on April 23 following the company’s decision to postpone today’s scheduled board meeting in order to examine its fourth-quarter results. The reason for this delay is the finding of fraud at one of the company’s North East branches. The crime entailed the falsification of KYC paperwork pertaining to loans for retail vehicles, which led to the embezzlement of corporate funds.
M&M Finance shares were trading at Rs 266.70 on the NSE at 10:02 am. 84 lakh shares have traded hands on the exchanges thus far, a substantial increase over the one-month daily traded average of 27 lakh shares. The fraud revelation also alarmed investors and sparked a jump in counter volumes.
The stock exchange was notified by M&M Finance that the fraudulent behavior resulted in the misuse of corporate funds. According to the exchange filing, the projected financial impact of this fraud is expected to be around Rs 150 crore. The organization has taken immediate action to implement the appropriate corrective measures in response to the situation.
The business has determined what has to be fixed and notified exchanges that some of the individuals involved have been taken into custody.
Additional topics on the agenda for the Audit Committee and Board Meeting on that date include talking about increasing the maximum amount that can be borrowed overall and issuing non-convertible debentures. The yearly earnings conference call has also been postponed.
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