Infra stocks gain on RBI move on non-SLR bonds
At present, banks’ investments in non-SLR bonds are classified either under ‘held for trading’ or ‘available for sale category’ and subjected to ‘mark to market’ requirements.
By ET Bureau |
MUMBAI: Shares of infrastructure companies shot up after the Reserve Bank of India in its annual policy meet proposed to allow banks to classify their investments in non-SLR bonds issued by companies engaged in infrastructure activities and having a minimum residual maturity of seven years under the held to maturity (HTM) category.
This is being done as the long-term bonds issued by companies engaged in infrastructure activities are generally held by banks for a long period and not traded and also with a view to incentivising banks to invest in such bonds.
At present, banks’ investments in non-SLR bonds are classified either under ‘held for trading’ or ‘available for sale category’ and subjected to ‘mark to market’ requirements.
At 2:15 pm, Roman Tarmat surged 10.04 per cent, ARSS Infrastructure gained 5.32%, Puravankara Projects advanced 5.22 per cent, Nagarjuna Construction moved 5.16 per cent higher, Maytas Infra jumped 5.13 per cent and Unitech rose 4.88 per cent.
This is being done as the long-term bonds issued by companies engaged in infrastructure activities are generally held by banks for a long period and not traded and also with a view to incentivising banks to invest in such bonds.
At present, banks’ investments in non-SLR bonds are classified either under ‘held for trading’ or ‘available for sale category’ and subjected to ‘mark to market’ requirements.
At 2:15 pm, Roman Tarmat surged 10.04 per cent, ARSS Infrastructure gained 5.32%, Puravankara Projects advanced 5.22 per cent, Nagarjuna Construction moved 5.16 per cent higher, Maytas Infra jumped 5.13 per cent and Unitech rose 4.88 per cent.
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