RBI Plans To Tighten Norms – NBFC Stocks Plunge
On Monday, as soon as the Reserve Bank of India in its policy meet said it may strengthen guidelines for such entities to avoid risks, the shares of select non-banking financial companies plummeted.
RBI 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, CLSA analysts said in a note.
The shares of Dewan Housing Finance Corporation (DHFL) plunged over 16 per cent, touching its fresh 52-week low of Rs 229.20 on BSE today extending losing streak to a fourth consecutive session.
The shares of the company were trading at Rs 239.40 apiece, down 12.72 per cent at around 1:20 pm.
The equity benchmark BSE Sensex was down 93 points at 34,284, while the NSE Nifty index was trading 21 points down at 10,296 at that time.
DHFL, incorporated in 1984, is a midcap company with a market cap of Rs 7,474.68 crore operating in the finance sector.