Founders buy 2.38% in Money Matters; stock up

Scam-tainted Money Matters Financial Services said on Wednesday that a founder group has bought 0.82 million shares, or 2.38% equity, in the company, to raise its stake to 30.69%.

The financial services provider said last month that founder groups want to buy up to 5% stake in it, without specifying a reason.

Late last year, the Central Bureau of Investigation arrested the Money Matters' chairman and two other officials along with the senior executives of three state-run banks and other financial firms on charges of bribing bank officials for sanctioning loans.

Its shares, valued by the market at USD 51.9 million, have lost nearly 90% of their value since then. On Wednesday, they hit the upper limit of 5% and were trading at Rs 70.15 in a weak Mumbai market.