On Monday, shares of SREI Infrastructure Finance declined over 15 percent after the company said that the Reserve Bank of India would be conducting a special audit of the company and its subsidiary.

SREI Infrastructure said in the stock exchange filing: We would like to inform you that a special audit of the Company and its subsidiary, Srei Equipment Finance Limited is being undertaken by an auditor appointed by Reserve Bank of India (RBI) in the exercise of its powers under Section 45 MA(3) of the RBI Act, 1934”

IN addition, Brickwork ratings downgraded long-term ratings of SREI Infrastructure Finance Ltd adding to the negative sentiment. The rating agency has downgraded the long-term ratings of the company on the innovative perpetual debt instrument to 'BWR BB' from 'BWR BBB-'/Negative while placing the ratings under credit watch with negative implications.

"The rating downgrade is mainly driven by continued stress on asset quality in the equipment and infrastructure financing loan portfolios, a significant decline in profitability and stretched liquidity position of the company on account of low collections.

These factors contribute the fall in stocks of SREI Infrastructure Finance. During the first afternoon hours of the session, SREI Infrastructure Finance stock quoted t Rs. 5.85 per share, down by 12.6 percent from its previous closing on the NSE.

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