Page 15 - Banking Finance October 2019

HOUSING

HOUSING

NEWS
NEWS
NEWS
NEWS
NEWS

Indiabulls to be replaced RBI committee suggests new govt sponsored interme-

by Nestle in Nifty soon diaries for HFCs
From September 27, Nestle India will With an aim to improve mortgage-backed securitization, a five-member com-
replace non-banking financial player mittee formed by the RBI has recently recommended
Indiabulls Housing Finance in Nifty50 the formation of a new government sponsored inter-
index. The replacement is also appli- mediary through the National Housing Bank (NHB)
cable to Nifty50 Equal Weight Index. specifically for housing finance companies.
Shares of Indiabulls Housing Finance The committee has suggested development of an in-
have lowered more than 60% from termediary company with an initial capital of Rs 500
their 52-week high to a market-cap crore, in which the government will hold 51% stake, which will be gradually
of Rs 19,542 crore recently. Mean- brought down to 26 per cent over five years.
while, Nestle hit its all-time high of “The intermediary would be allowed to invest in each pool it securitises to the
Rs 12,850.55 and now commands a extent of 5 per cent of the pool or 5 per cent of its own capital base, whichever
market cap of Rs 1,20,661 crore. The is lower. An overall aggregate limit of 50 per cent capital of the intermediary
indices are reconstituted twice every can be set as the limit for market making activities," the committee said in its
year based on data for six months 90 page report.
ending January and July.
The last change happened in Febru- FinMin to meet housing finance companies on
ary when Britannia replaced HPCL.
The NSE Indices also announced a liquidity
couple of changes in other indices, Finance Minister Nirmala Sitharaman will hold a meeting with housing finance
including Nifty Next 50, Nifty 100 and companies, official sources said. Along with housing finance firms, finance min-
Nifty 500. It also made changes in ister will also NBFCs and private sector banks. Along with some selected HFCs
sectoral as well as mid and smallcap and NBFCs, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank are ex-
indices. pected to attend and are also likely to be there. Liquidity, rate cut, credit dis-

The exchange has also decided to in- bursal are likely to be part of the discussion between the Minister and the lend-
ers and financiers, sources said.
clude Berger Paints, Indiabulls Hous-
ing Finance, Power Finance Corpora- Earlier in September, Sitharaman said government wants to ensure maximum
tion and Punjab National Bank in credit disbursal during the festive season and to expedite that the flow of banks'
Nifty Next 50 index, while it decided liquidity to the NBFCs and the customers, she had announced that all scheduled
to exclude ABB India, BHEL, MRF banks (both public and private banks) will hold large gatherings in a total of 400
and Steel Authority of India from the districts, where customers can come and take any type of loan they want from
index. the banks and the NBFCs partnering with them.

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