SKS Microfinance slumps over 5 pc on BSE

MUMBAI: Extending its losses for the second straight session, SKS Microfinance today plunged over five per cent on the Bombay Stock Exchange after reports that SEBI has asked the company to explain the reasons behind sacking its CEO Suresh Gurumani.

Shares of the Hyderabad-based microfinance firm tanked 5.66 per cent to close at Rs 1,228.25 on BSE.

During the day, the scrip had tanked 8.06 per cent to hit one-month low of Rs 1,196.70 on BSE.

The company, on Monday, terminated Gurumani's services with immediate effect.

Shares of SKS Microfinance had slumped by 6.46 per cent in the last two trading sessions, which according to marketmen, is due to the nervousness among the investors after the company sacked its chief executive.

Similarly on the National Stock Exchange, the scrips lost 5.13 per cent to end at Rs 1,237. On the volume front, over 10 lakh shares of the company changed hands on the bourses.

According to media reports, SEBI has sent a letter to the company, asking it to disclose whether it was earlier aware of any events or circumstances that could have resulted in Gurumani's exit.

SEBI has also asked the company to explain the reason for the resignation of one of its independent directors, Ashish Lakhanpal from the board, the report added.

Meanwhile, 30-share benchmark Sensex ended the session 65 points lower at 20,250.26.