New Delhi, Aug. 18 — A small-cap stock under Rs.50, Tiger Logistics (India), rose over 4% in intraday trade on the BSE on Tuesday, 18 August, defying weak market sentiment, a day after the company said it received a compounding order from the Reserve Bank of India’s (RBI) Foreign Exchange Department.
Tiger Logistics share price opened at Rs.27.03 against its previous close of Rs.27.03 and rose 4.1% to an intraday high of Rs.28.13. Around 1:20 PM, the small-cap stock was 3.6% up at Rs.28, looking set to extend gains for the third consecutive session.
In an exchange filing on 17 August, Tiger Logistics said it had received a compounding order from the RBI Foreign Exchange Department regarding a non-compliance issue under the Foreign Exchange Management Act, 1999 (FEMA).
A compounding order issued by the RBI is essentially an order through which the banking regulator settles an admitted violation of foreign-exchange rules by imposing a specified monetary amount.
As per the exchange filing, the RBI compounding order is related to the non-compliance with provisions of FEMA Notification No. 120/RB-2004 dated 7 July 2004 concerning post-disinvestment valuation reporting requirement.
The RBI passed the compounding order, resolving the contravention upon a payment of Rs.59,981.
The company said the matter stands compounded upon the payment of the amount, and there is no material impact on the operations or other activities of the company.
Tiger Logistics share price has been under pressure this year so far, down 23% year-to-date.
The small-cap stock hit a 52-week low of Rs.22.87 on 23 March this year after hitting a 52-week high of Rs. 56.74 on 18 September last year.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary. Published by HT Digital Content Services with permission from MINT. For any query with respect to this article or any other content requirement, please contact Editor at contentservices@htdigital.in
