No non-banking finance companies lending for stocks

RBI further said that loans should not be more than 50% of value of securities pledged

Mumbai: In a bid to contain the high bouts of volatility in the stock markets, RBI on Thursday said that non-banking finance companies giving loans against shares should disclose to the stock exchanges the details of shares pledged in its favour.

Moreover, RBI also said that NBFC’s should accept only Group 1 securities as collateral for loans valued at more than Rs 5 lakh.

RBI further said that such loans should not be more than 50 per cent of the value of securities pledged.

( Source : dc correspondent )
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