- Reserve Bank of India, the Central Bank, has announced that it will tighten norms for NBFCs
- RBI adds that that many of the NBFCs are becoming systemically important and have a higher dependence on short-term sources like commercial papers and mutual funds, CLSA analysts.
- The modus operandi is still to be announced by RBI which is being worked out.
- Shares of some of the non-banking financial companies (NBFCs) plummeted after Reserve Bank of India in its policy meet on Friday announced its view to strengthen guidelines for such entities to avoid risks.
- For the fourth consecutive session, shares of Dewan Housing Finance Corporation (DHFL) plunged over 16 per cent, touching its fresh 52-week low of Rs 229.20l
- DHFL, incorporated in 1984, is a midcap company with a market cap of Rs 7,474.68 crore operating in the finance sector.
- Shares of several Non-banking companies have been under pressure, of late amid concerns of increased borrowing cost post the IL&FS fiasco.
- Few of the shares which faced a sizeable fall were:
- Pioneer Invest Corp (down 17.99 per cent),
- India Cements Capital (down 13.58 per cent),
- Edelweiss Financial Services (down 12.82 per cent) and
- JM Financial (down 11.26 per cent) cracked over 10 per cent.
- Amrapali Capital and Finance Services (down 9.91 per cent),
- Pankaj Piyush Trade & Investment (down 9.83 per cent),
- Elixir Capital (down 9.73 per cent),
- Magma Fincorp (down 9.58 per cent)