Non Banking Finance Companies (NBFCs) witnessed sharp rise in share prices on Friday.
Shares of Manappuram Finance gained the most with rise of 8.09%, followed by Muthoot Finance (3.63%), Reliance Capital (1.59%), IDFC (0.90%), L&T Finance Holding (0.80%), Bajaj Finance (0.66%) and Shriram Transport Finance Company (0.62%).
On Thursday, the Reserve Bank of India (RBI) asked all NBFCs with asset size of Rs 1 billion and more, to maintain a Loan to Value (LTV) ratio of 50% for loans granted against the collateral of shares.
Further the central bank directed NBFCs to accept only Group 1 securities as collateral for loans of value more than Rs 0.5 million.