Manappuram Finance Ltd (MFL) shareholders who suffered losses due to steep decline in the market value of the company’s stock are planning to seek redress from Securities & Exchange Board of India (Sebi).

MFL stock crashed nearly 20 per cent to Rs 27.70 a share on Tuesday on reports that the company selectively shared information about huge loan losses with some of its investors before an analyst call.

Nearly 4.38 crore shares changed hands on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) yesterday. The figure was considerably higher than a five-day daily average volume of 9 lakh shares.

The company made an attempt to clarify its position by issuing a statement to stock exchanges in the evening saying that the company expected an under-recovery of revenue on some of its gold loan portfolios due to correction in the price of the precious yellow metal, which might result in decrease in profit for the final quarter ending March 31, 2013. But, it was of no use. The stock kept declining in market value.

The huge volume with a steep decline in the market value of the share surprised market participants.

Sonam Udasi, research head at IDBI Caps, said, "If events took place as reported, shareholders who lost out have every right to seek redress from Sebi, whose rules clearly mandate that information cannot be selectively shared.”

The leading gold financier declined to comment on the report.