Shares of Titan Company drop following PAN directive

Titan Company shares dived following the central government’s ruling of mandatory Permanent Account Number (PAN) declaration for transactions above ₹2 lakh, as per reports. The shares dipped from Rs365.95 on December 16, to Rs343 and closed at Rs351.30 on Tuesday, reports add. The government’s ruling applies to any mode of payment and will be made effective from January 1, 2016.

The company noted that the directive could affect its cash sales in the future, although the products priced between Rs.2-5 lakh form less than 10 percent of its revenue generation from the jewellery unit, as per reports. Overall the company notes that the organised jewellery retail industry would be temporarily impacted by the government’s decision where transactions are usually of higher value.