M. Nagaraju, Secretary, Department of Financial Services, Ministry of Finance, on Tuesday rang the ceremonial bell to mark the listing of the country’s first mortgage-backed Pass Through Certificates (PTCs) on the National Stock Exchange (NSE). The certificates were structured by RMBS Development Company Limited.
The listing ceremony, held in Mumbai, was attended by senior officials from banks, housing finance companies, and key financial institutions. The PTCs, fully subscribed at ₹1,000 crore, are backed by a pool of housing loans originated by LIC Housing Finance Limited. A total of 1,00,000 certificates with a face value of ₹1,00,000 each were issued.
This marks the first time a PTC issue in India has had its coupon rate discovered through the NSE’s Electronic Book Provider (EBP) platform. The certificates carry a 7.26% annual coupon and have a final maturity of approximately 20 years. Rated AAA(SO) by CRISIL and CARE Ratings, the PTCs are issued in dematerialized form, making them fully transferable and eligible for secondary market trading.
Addressing the gathering, Nagaraju emphasized the crucial role of the housing and housing finance sectors in India’s economic development. “Housing finance has extensive forward and backward linkages with several other sectors, including infrastructure,” he said. “Meeting the housing needs of our vast population is essential to ensuring inclusive and sustained economic growth.”
He further underscored the potential of securitization in integrating the housing finance and debt markets, calling the introduction of RMBS (Residential Mortgage-Backed Securities) a possible catalyst for the sector’s future growth.
