Titan Industries fell 2.33% to Rs 235 at 15:09 IST on BSE, with the stock extending Friday's 11.98% slide triggered by the Reserve Bank of India issuing circular on gold import norms after market hours on Wednesday, 14 July 2013.
Meanwhile, the BSE Sensex was down 273.04 points, or 1.47%, to 18,325.14.
On BSE, 4.99 lakh shares were traded in the counter compared with average volume of 5.23 lakh shares in the past one quarter.
The stock hit a high of Rs 246.85 and a low of Rs 230.40 so far during the day. The stock hit a 52-week high of Rs 313.60 on 30 November 2012. It hit a 52-week low of Rs 200 on 13 June 2013.
The stock had outperformed the market over the past one month till 16 August 2013, falling 3.72% compared with the Sensex's 6.31% decline. The scrip, however, underperformed the market in past one quarter, falling 14.22% as against Sensex's 8.15% fall.
The large-cap company has an equity capital of Rs 88.78 crore. Face value per share is Re 1.
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Shares of Titan Industries slumped 14.03% in a two trading days from a recent high of Rs 273.35 on 14 August 2013. The stock dropped 11.98% in a single trading session to Rs 240.60 on 16 August 2013. The fall was triggered by the Reserve Bank of India (RBI) on Wednesday, 14 July 2013, announcing ban on the import of gold coins and medallions, and that importers of gold will have to pay upfront before getting any of the yellow metal with the condition that at least 20% of the gold imported will have to be re-exported and the balance for domestic use. Stock market was closed on Thursday, 15 August 2013 for a public holiday.
Further, RBI said, nominated banks/ nominated agencies and other entities should make available gold for domestic use only to the entities engaged in jewellery business/bullion dealers and to banks authorised to administer the gold deposit scheme against full upfront payment.
Also, RBI said, nominated banks/agencies/refineries and other entities should ensure that there is no front-loading of imports, particularly in the first and second lots of imports. Such imports should be linked to normal quantities of gold supplied to the exporters by the nominated banks/agencies and should not exceed the highest quantity supplied during any one year out of last three years. The quantity thus arrived at, however, will not be imported in one or two lots only.
As a thumb rule, imports of more than maximum of two months of requirements of the exporters in a lot would be considered unusual. (For eg, if the gold supplied to exporters by a bank during the last three years was say, 30 tonnes, 40 tonnes and 60 tonnes, respectively, imports should be based on highest of three, ie, 60 tonnes.
Further, import of 50 tonnes (two months export of 10 tonnes for exports and 4 times the amount for domestic use, totalling 50 tonnes) will be considered unusual. In case of nominated banks not having a previous record of having supplied gold to the exporters they would need to seek prior approval from RBI before placing orders for import of gold for the first lot under the 20/80 scheme.
The 20/80 principle would also apply henceforth for import of gold in any form/purity, including gold dore, whereby 20 per cent of the gold imported should be provided to the exporters. This will be administered and monitored at the refinery level for each consignment at the time of such imports. This will also be monitored by the customs authorities, RBI said.
The refinery should make available for domestic use only to the entities engaged in jewellery business/bullion dealers and to the banks authorised to administer the Gold Deposit Scheme against full upfront payment and sale of gold against any other form of payment shall not be permitted.
Further, the import of gold dore will be permitted only against a licence issued by DGFT.
Any authorisation such as Advance Authorisation/Duty Free Import Authorization (DFIA) should be utilised for import of gold meant for export purposes only and no diversion for domestic use will be permitted.
Entities in the special economic zone (SEZ) and export oriented units (EoUs), premier and star trading houses are permitted to import gold exclusively for the purpose of exports only.
Government of India will be issuing separate instructions to the customs authorities/DGFT to operationalise and monitor the above requirements for import of gold.
The above restrictions will come into force with immediate effect, RBI added.
Titan Industries' net profit rose 16.9% to Rs 182.48 crore on 42% growth in sales income to Rs 3087.79 crore in Q1 June 2013 over Q1 June 2012.
Titan Industries retails branded gold jewellery under the brand name Tanishq. It sells watches under a premium brand Titan and economy brand Sonata.
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