Money & Banking
NHB may come up with norms on asset-backed securitisation

The National Housing Bank is considering norms that would allow housing finance companies to sell non-real estate loans and guarantees for funding purposes

 
New Delhi: The National Housing Bank (NHB) said it is considering coming out with norms that will allow housing finance companies to sell non-real estate loans and guarantees for funding purposes, reports PTI.
 
"We are also looking at securitising standard portfolios assets which are well known in the industry but the awareness about these assets is underlined and must be promoted amid the investor community," NHB Chairman and Managing Director RV Verma said at an Assocham event.
 
Asset backed securities is an instrument backed by a loan or lease against assets other than real estate.
 
"From the investor point of view, we want to channelise the papers from institutional investors into the market and these investors would include mutual fund, pension, provident fund... we need to channelise long term funding into the mortgage market," he said.
 
"We are taking up the issue with government," he added.
 
Noting that there is deficiency of capital in the housing sector, Verma said that there was need to get capital into the sector through market oriented ways which is possible with securitisation.
 
Further, the NHB chairman said that securitisation would result in capital conservation, capital relief and its optimum utilisation through off-balance sheet transactions.
 
"...the lending sector cannot lend beyond a certain point due to capital constraints and with securitisation they would be enabled to continue to lend and can come over all constraints if they are able to securitise," Verma said.
 

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SEBI restrains D&A Financial from taking up new public offers

In the final order, SEBI upheld its interim order passed against book running lead manager -D&A Financial Services to the public issue of Brooks Laboratories and Dinesh R Kaushik, director of the company

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has restrained merchant banker D&A Financial Services and its director Dinesh Kaushik from taking up new assignments or be involved in new public offers till further orders due to non-compliance with the disclosure norms in Brooks Laboratories' initial public offering (IPO) prospectus, reports PTI.
 
The final order follows an interim order passed on 28 December 2011 after giving an opportunity to these entities to present their case. In the final order, SEBI upheld its interim order passed against book running lead manager -D&A Financial Services Ltd to the public issue of Brooks Laboratories and director of D&A, Dinesh R Kaushik.
 
SEBI through its exparte ad-interim order dated 28 December 2011, restrained the D&A Financial Services and its director from taking up any new assignment or involvement in any new public offer from the securities market till further orders.
 
The regulator said it "confirms the directions issued against D&A Financial Services Ltd and its director Dinesh R Kaushik vide ex-parte ad interim Order dated 28 December 2011 in the matter of Brooks Laboratories." 
 
In its order the regulator, "prohibited D&A Financial Services Ltd and Dinesh R Kaushik, Director of D&A from taking up any new assignment or involvement in any new issue of capital including IPO, follow-on issue, etc from the ecurities market in any manner whatsoever, till further directions." 
 
It further said, D&A was prima facie found to have not made proper disclosure in a timely manner and thereby failed in its responsibility to conduct proper due diligence into the affairs of Brooks.
 

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