On the NSE, it climbed 9.35 per cent to Rs 417.95 per piece.
Shares of IIFL Finance Ltd had declined for the second day in a row on Wednesday post the
In a statement on Monday, the RBI said it has directed IIFL Finance Ltd "to cease and desist, with immediate effect, from sanctioning or disbursing gold loans or assigning/ securitising/ selling any of its gold loans".
The company can, however, continue to service its existing gold loan portfolio through the usual collection and recovery processes, it added.
Indian-Canadian billionaire Prem Watsa-backed
The RBI's embargo has raised liquidity concerns among the company's investors and lenders,
In response to these concerns, Fairfax India has agreed to extend up to USD 200 million of liquidity support on terms to be mutually agreed and subject to applicable laws, including regulatory approvals (if any), it added.
IIFL Finance offers a range of loans and mortgages. The latest directions from the RBI pertain to only the gold loan business.