Bhushan Steel plunges 20%; CBI orders internal inquiry for not arresting company's MD

NEW DELHI: Bhushan Steel has hit lower circuit of 20% at Rs 305, also its 52-week low on Bombay Stock Exchange ( BSE), on back of heavy volumes after the media reports cited that the Central Bureau of Investigation ( CBI) has ordered an internal inquiry against its own officers not arresting Neeraj Singhal, vice-chairman & managing director of Bhushan Steel.

Bhushan Steel is one of the companies that were allegedly trying to settle their loan dues by paying a bribe to CMD of Syndicate Bank S K Jain, who was arrested on Saturday by CBI on charges of bribery.

The stock opened at Rs 375 on the BSE and is currently down 20% at Rs 304.60. It hit a high of Rs 378. Trading volumes on the counter surged over two times on the exchange as 1,50,000 shares changed hands compared to its two week average of 83,000 shares.