NBFC stocks show mixed trend on BSE

Shares of non-banking financial companies (NBFCs) showed a mixed trend on the BSE today after the Reserve Bank tightened norms for these firms.
SREI Infrastructure Finance tumbled 4.68 per cent, while Religare Enterprises was down 1.03 per cent, Manappuram Finance by 0.72 per cent and Muthoot Finance by 0.38 per cent at the BSE.
On the other hand, shares of Shriram Transport Finance Company surged 4.93 per cent, IDFC by 2.65 per cent, LIC Housing Finance by 2.25 per cent, Bajaj Finserv by 1.36 per cent and Reliance Capital by 1.25 per cent.
In the wake of public investors increasingly being defrauded in the name of non-banking financial services, RBI yesterday tightened its norms for NBFCs by requiring them to have a much stronger capital base, failing which they would lose their registration.

The NBFCs (Non Banking Financial Companies) would be subjected to a stronger set of rules and regulations if they raise public deposits, RBI had said while announcing a new set of norms that also mandate a huge eight-fold increase in the minimum 'net owned fund' requirement from Rs 25 lakh to Rs 2 crore by 2017 in a phased manner.
The move comes at a time when thousands of companies, including various small entities and some large ones, have been under the scanner for illicit fund-raising activities across the country.
In India, total assets being managed by the financial sector is estimated at USD 2.8 trillion, out of which over USD 300 billion are with NBFCs.