Shares of Reliance Capital and Reliance Home Finance fell for a third consecutive day Friday, with the former plunging up to 9.3 per cent after PricewaterhouseCoopers (PwC) resigned as the statutory auditor of both companies.

Shares of Reliance Capital tanked 9.30 per cent to close at Rs 76.55 on the Bombay Stock Exchange (BSE). Intra-day, the scrip dropped 13.15 per cent to hit a 52-week low of Rs 73.30.

Reliance Home Finance shares fell 4.01 per cent to close at Rs 14.35. During the day, it plunged 7.35 per cent to a one-year low of Rs 13.85.

On Wednesday, shares of both firms tumbled up to 7 per cent and the following day the scrips saw a decline of up to 12.3 per cent.

Regulator Sebi and Ministry of Corporate Affairs (MCA) are looking into the sudden resignation of PwC as auditor of both firms and have asked the stock exchanges to collect all necessary information including trade details and statements made by the three entities.

The development assumes significance in the wake of the auditors’ role coming under scanner of multiple agencies in cases involving various corporate houses, including listed companies.

The regulator, the ministry and the exchanges may also seek additional details from the auditor and two companies, if required, said senior officials.

Anil Ambani-led Reliance Capital and Reliance Home Finance Wednesday said Price Waterhouse & Co Chartered Accountants (PwC) has resigned as statutory auditor of both companies.

The companies said they did not agree with the reasons given by PwC for its resignation.

Related Topics
comment COMMENT NOW