Stock Crash: After RBI's announcement, the shares of these companies fell sharply:

RBI Governor Sanjay Malhotra announced on Wednesday (April 9) that new guidelines will soon be introduced on gold loans. After this announcement, shares of Muthoot Finance have fallen by 5%. Shares of IIFL Finance have fallen by 4.7%. Shares of Manappuram Finance also saw a decline of 1.6%.

RBI Governor said that both banks and NBFCs give loans on 'pledge of gold'. We will soon issue new comprehensive guidelines to make the provisioning, conduct rules on them uniform. That is, now the rules on gold loan can be more strict and uniform.

RBI will now make similar rules on gold loan for all banks and finance companies. This will affect the way companies give loans and customers will benefit. In the initial phase, there will be some pressure on NBFCs but in the long run the system will become strong and safe.

Company	Share of Gold Loan in total business	Impact
Muthoot Finance	98%	worst hit
Manappuram Finance	50%	Medium affected
IIFL Finance	21%	Slightly affected

Almost the entire business of Muthoot Finance is based on Gold Loan. Gold Loan is also an important part for Manappuram and IIFL Finance.

If RBI's new rules become strict, then the loan giving capacity, margin and profit of these companies may be affected.

stock	Current Price	52-week high	Decline
Muthoot Finance	₹2,175	₹2,435	-11% down
IIFL Finance	₹317.8	₹560	-43% down
Manappuram Finance	(In F&O ban)	-

RBI has announced a review of new rules on Gold Loan. RBI has said that the rules for loans given against gold ornaments will be reviewed. Till now there were different rules for banks and NBFCs (like Muthoot, Manappuram). Now similar and comprehensive rules will be made for all institutions.

RBI's aim is to make similar rules for everyone (Harmonization of Regulations). Their risk-taking capability has to be kept in mind. Some problems and concerns have to be corrected.

Now	In detail
What will change?	Same Gold Loan rules will apply to both banks and NBFCs.
Why is RBI making changes?	Different rules had increased inequality and risk.
What will be in the new rules?	- Which loan can be given for which purpose (consumption/income generation) - What should be the loan-to-value (LTV) ratio - Recovery method - Customer conduct norms - Risk management measures
When will it be implemented?	Now draft guidelines will be issued and then suggestions (public comments) will be sought from the public. After that the final rules will come.

What to look forward to? Everyone will be watching the new RBI Gold Loan rules.

If the rules are very strict, the growth and profitability of NBFCs may be affected. In the short term, the shares of these companies may fluctuate.

RBI's strict rules have put pressure on Gold Loan companies. Small investors should be a little cautious while making new investments in the stocks of these companies.