First Leasing hits the bottom

First Leasing has hit the 20% lower circuit at Rs.26.80, a 52-week low. Volumes have doubled with more sell orders pending on the counter.

The stock has hit this bottom after the company issued a Press Release today morning, stating that RBI has barred the company from doing any business under it completes inspection of its books as at 31^st March 2013. As per the RBI diktat, the company for now cannot (a) sell, transfer, create charge or mortgage or deal in any manner with its property and assets without prior written permission of RBI; (b) declare or distribute any dividend; (c) transact any business; or (d) incur any further liabilities.