KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Arohan Financial Services Ltd, a microfinance institution focused on providing loans to underserved women, is postponing its initial public offering (IPO) after Indian regulators ordered a group of shadow lenders to halt new loans. The Reserve Bank of India (RBI) took action earlier this month, citing concerns over high interest rates and non-compliance with rules related to borrower assessments.
Arohan, based in Kolkata, had planned to file for an IPO to raise US$200 million (RM872 million) but has now delayed those plans following the RBI’s directive. The shadow bank offers loans to groups of three to five women at 24.25% interest rates, with loan amounts ranging from 25,000 rupees (US$297) to 100,000 rupees, over a period of 24-30 months.
The RBI found that Arohan and three other shadow lenders—Asirvad Micro Finance Ltd, DMI Finance Pvt Ltd, and Navi Finserv Ltd—violated rules related to household income assessments and borrowers' ability to repay. Navi Finserv, backed by Flipkart co-founder Sachin Bansal, also canceled a proposed one billion rupee bond sale following the RBI’s order.
Arohan’s investors include Teachers Insurance and Annuity Association of America and Danish asset manager Maj Invest. The company had considered an IPO in the past but postponed it amid similar regulatory and market challenges. Arohan reported a net profit of US$37 million for the financial year ending March.
The RBI's crackdown comes amid increasing scrutiny of shadow banking and microfinance institutions, as these lenders often target financially vulnerable populations with high interest rates.
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