Realty and housing finance companies are ruling the roost today morning. The top five gainers on the BSE is led by Prestige, followed by Oberoi Realty, DHFL, Repco Home, GHCL. The BSE realty Index is up almost 2% currently.
The reason? To better the liquidity condition in the economy, RBU yesterday tinkered with rules for the holding period of securitised loan portfolios.
RBI reduced the minimum holding period for NBFC loans from 12 months to 6 months or payable in two quarterly installments.
The revised rules are applicable for loans of original maturity of above 5 years, which in turn bodes very well for housing finance companies as they typically have very long loan tenures. .
RBI also hiked the holding amount requirement from 10% to 20% of the loan portfolio.
These rules will stay in place for the next six months.