Financials rally up to 7% on report govt could notify NBFC resolution rules

However, some financial stocks, with weak fundamentals, missed the rally. For instance, Indian Bank, YES Bank, and Indiabulls Ventures slipped up to 9 per cent.

Bank and non-banking financial companies (NBFCs), including ICICI Bank, HDFC, HDFC Bank, Cholamandalam Investment and Finance Company, and Axis Bank rallied on Thursday on report that the government was mulling resolution process for stressed NBFCs.

Under the process, the government is likely to introduce a special window under section 227 of the Insolvency and Bankruptcy Code (IBC), which would give "special dispensation" on who could initiate the resolution process, on moratorium, and to resolution professional, business channel CNBC TV-18 reported.

Government was considering the move to deal with special cases or class of cases, and could notify the rules in