NBFCs mixed after RBI proposes new norms

Shares of fourteen non-banking financial companies were mixed at 12:04 IST on BSE after the Reserve Bank of India proposed new norms for regulation of non-banking financial companies.

Magma Fincorp (up 4.35%), Bajaj Finserv (up 1.59%), Bajaj Finance (up 0.56%), LIC Housing Finance (up 0.42%), L&T Finance Holdings (up 0.32%), Reliance Capital (up 0.23%), IDFC (up 0.21%) and Muthoot Capital Services (up 0.15%), edged higher.

Muthoot Finance (down 0.37%), IFCI (down 0.44%), Manappuram Finance (down 0.47%), IIFL Holdings (down 0.53%), Mahindra & Mahindra Financial Services (down 0.59%) and Shriram Transport Finance Company (down 1.29%), edged lower.

The S&P BSE Sensex was up 108.09 points, or 0.39% at 28,083.95.

The Reserve Bank of India (RBI) yesterday, 30 March 2015, notified any purchase of a stake of 26% or more in a non-banking financial companies (NBFCs), or a change in more than 30% of its directors, would need the central bank's permission.

After getting prior approval from RBI, the NBFC and the potential acquirer have to put out a public notice outlining the details of the transferee and the reasons for such sale or transfer of ownership and control, 30 days in advance, RBI said in a notification.

The RBI also said in its circular that the source of funds behind new investors in any NBFC will have to be disclosed. It also asked for an undertaking that new proposed investors are not associated with any unregistered body that accepts public deposits.

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