Mumbai: Shares of Indiabulls Housing Finance Ltd on Monday nosedived over 38%--their maximum fall since listing--to hit an over five-year low after a court-ordered probe into allegations of fraud at the company. A fall in shares of Lakshmi Vilas Bank after the Reserve Bank of India (RBI) initiated prompt corrective action (PCA) plan on the lender also put pressure on Indiabulls Housing.

Lakshmi Vilas Bank and Indiabulls Housing Finance are proposed to merge and the central bank’s move to place the former under PCA framework may jeopardise the merger.

Indiabulls Housing slumped 38.5%, its biggest fall since July 2013, to hit a low of 240.10 -- a level last seen on 4 April 2014. The company’s $350 million, 6.375% notes due on 2022 fell to their lowest level since issuance in May, according to prices compiled by Bloomberg.

Indiabulls Real Estate fell 10%, while Indiabulls Ventures Ltd slumped 20%.

Lakshmi Vilas Bank hit 5% lower circuit.

The Delhi High Court on Friday issued notices to Indiabulls Housing Finance Ltd (IBHFL), Securities and Exchange Board of India (Sebi), the Reserve Bank of India (RBI) and other respondents in a public interest litigation (PIL) seeking a probe into the mortgage lender.

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