Manappuram Finance’s shares fell sharply on October 17, dropping as much as 15% to Rs 150.73 in morning trading after the Reserve Bank of India (RBI) ordered its subsidiary, Asirvad Microfinance, to halt loan disbursements.

On October 17, the Reserve Bank of India took action against four NBFCs and NBFC-MFI citing material supervisory concerns, including Asirvad Microfinance.

According to the report, Asirvad contributes around 27 per cent to the consolidated assets under management (AUM) of Manappuram Finance

The RBI has asked Manappuram Finance's subsidiary Asirvad Micro Finance to 'cease and desist' sanction and disbursal of loans.

The Reserve Bank of Indias (RBI) recent crackdown on Asirvad Microfinance, a subsidiary of Manappuram Finance, has sent shockwaves through the market, leading to multiple downgrades from brokerages. On October 17,

On Thursday, the RBI imposed business restrictions on four NBFCs — Asirvad Microfinance, Arohan Financial Services, DMI Finance and Navi Finserv.

Although brokerages do not see significant downside in shares of Manappuram Finance due to cheaper valuations, they believe investor interest may take a while to return.

NBFC says it will do a comprehensive review of enterprise-wide governance, risk management and regulatory compliance before submitting it to RBI

Manappuram Finance share price tanked 15 per cent to Rs 150.80, hitting an 11-month low on the BSE after the RBI put restrictions on Asirvad Micro Finance

Shares of Manappuram Finance are under scrutiny following the Reserve Bank of India's recent restrictions on the company, among three other NBFCs, due to serious supervisory concerns. As a result, the stock has faced multiple rating downgrades and target price cuts from brokerage firms.

RBI’s ban on Asirvad Micro Finance for high pricing has triggered downgrades for Manappuram Finance, causing a 15% drop in shares. Jefferies has lowered its target price to ₹167. Morgan Stanley has also cut its target price to ₹170.