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Shares of non banking finance companies (NBFCs) are trading in the range of 1-3% after the Reserve Bank of India (RBI) has come up with new regulatory framework for NBFCs.
In a bid to bring NBFC norms in line with those of banks, the RBI on Monday unleashed tighter rules for NBFCs.
According to the new guidelines, NBFCs will require higher minimum capital; have less time to declare bad loans, and board-approved fit and proper criteria for director appointments.
The new norms, which will be implemented in a phased manner, are made applicable for NBFCs that manage funds worth Rs 500 crore and for those that accept public deposits. The central bank will also start granting fresh NBFC licences.
Among individual stocks, Cholamandalam Investment and Finance Company, Shriram Transport Finance Company, Mahindra and Mahindra Financial Services, L&T Finance Holdings and Bajaj Finserv are up 1-3% on the BSE.
Srei Infrastructure Finance, however, dipped nearly 5% to Rs 45 after reporting 32% year on year decline in consolidated net profit at Rs 28 crore for the quarter ended September 2014.
In a bid to bring NBFC norms in line with those of banks, the RBI on Monday unleashed tighter rules for NBFCs.
According to the new guidelines, NBFCs will require higher minimum capital; have less time to declare bad loans, and board-approved fit and proper criteria for director appointments.
The new norms, which will be implemented in a phased manner, are made applicable for NBFCs that manage funds worth Rs 500 crore and for those that accept public deposits. The central bank will also start granting fresh NBFC licences.
Among individual stocks, Cholamandalam Investment and Finance Company, Shriram Transport Finance Company, Mahindra and Mahindra Financial Services, L&T Finance Holdings and Bajaj Finserv are up 1-3% on the BSE.
Srei Infrastructure Finance, however, dipped nearly 5% to Rs 45 after reporting 32% year on year decline in consolidated net profit at Rs 28 crore for the quarter ended September 2014.
