Finance & Taxes

The decision to evolve this new liquidity window was taken at a meeting between the NHB brass and lenders on Monday. NHB will offer this facility parallel with the usual refinance window. As per preliminary discussions, the apex housing bank will buy out only the standard assets which carry low-risk weightage. Loans not exceeding Rs 30 lakh will be eligible for this arrangement. "We would like to buy loans which have minimum seasoning of at least six months," Mr Verma said. The amended Securities & Contracts Regulation Act now allows securitised instruments to be traded. This gives an added flexibility to the securitised market. "The seasoning of assets and tradeability will help fetch a good price for the securitised assets," Mr Verma said, adding that the whole exercise will help NHB continue funding over and above the exposure limit to individual entities.ET