The Indian Wire » Business » RBI to strengthen NBFCs norms , DHFL sinks over 18%
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RBI to strengthen NBFCs norms , DHFL sinks over 18%

Stock market down

DHFL or Dewan Housing Finance Corporation reported a discount of over 20% in the afternoon today to trade for ₹205 on BSE. Moreover, the share price closed by -18.52% at ₹223.50.

Central Bank’s idea to strengthen the policy for non-banking financial companies might be the primary reason behind the DHFL share slump. Reportedly, Reserve Bank of India in it’s coming policy meet will take actions to mitigate risk cause by IL&FS debt obligations over the past few weeks.

Until now DHFL has witnessed an overall loss of 52.8% since the inception of 2018. Whereas, other NBFC who followed the same trend were JM financial, IIFL and Edelweiss which plunged from 30% to 50% in this year.

According to Economic Times, The central bank will tighten norms for NBFCs given that many are becoming systemically important and have a higher dependence on short-term sources like commercial papers and mutual funds, reported CLSA analysts.

In the previous month, IL&FS reported a rally of debt obligations which were to be serviced in September 2018. This has crashed the all-time positive NBFC market and had spread liquidity fears among the investors forcing RBI to intervene in the given situation.

BSE jumped 97 points higher to close at 34,474 whereas NSE Nifty Index settled at 10,348.

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