Shares in non-banking finance companies (NBFCs) gain after the central bank tightened rules for “shadow banks”, raising minimum capital requirements and restricting deposits, ending the uncertainty.
The rules contain no unexpected changes, contrary to investors’ fears, say traders.
Shriram Transport gains 3.9 pct, Mahindra and Mahindra Financial Services gains 2.4 pct.
IDFC gains 2.6 pct, LIC Housing Finance up 1.6 pct.
Among key changes, NBFCs’ bad loan and provisioning norms have been aligned with banks.
The long transition period, until March 2018, for new rules also helps.