Reuters Market Eye - Titan Co Ltd fell as much as 3.7 percent after its jewellery unit, Tanishq, said they had closed two gold deposit schemes, under which customers would deposit cash for a certain period and receive an amount of jewellery at the end.
Tanishq said it would close the deposit schemes due to changes to rules governing the sale of deposits under the Companies Act passed last year, according to a notice from the jewellery retailer.
Gold deposit schemes provided cheap working capital for Titan. One of the schemes provided Titan with an internal rate of return of more than 12.5 percent according to a report by HDFC Securities.
Shares in Titan were down 2.4 percent at 2:05 p.m., after hitting a low of 318.10 rupees.
(Reporting by Abhishek Vishnoi)
