Shares of SKS Microfinance , the country's largest microfinance player, jumped by 20 per cent in early morning trade on the Bombay Stock Exchange for the second consecutive day on Friday, defying the broader market trend.
The stock that has been on an uptrend for the last three trading sessions, surged by 20 per cent on Friday morning to hit the upper circuit limit on both the Bombay Stock Exchange and National Stock Exchange in the wake of the government unveiling a draft Bill to tighten regulation of the microfinance sector.
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The stock was quoted at Rs 493.20, up 20 per cent from Thursday's close, on the BSE and on the NSE, it was at Rs 494.20, up 20 per cent vis-a-vis its last close.
The surge in the counter was despite the fact that the broader market was trading in negative territory. At 1043 hours, the BSE benchmark index Sensex was down 52.28 points at 19,026.02.
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The government on Wednesday released the draft Micro Financial Sector (Development and Regulation) Bill, 2011, which seeks to make it mandatory for all microfinance institutions to be registered with the Reserve Bank of India, making it the sectoral regulator.
The Bill, in its earlier avatar, had proposed that the National Bank for Agriculture and Rural Development (NABARD) would be the regulator of the sector.
Reportedly, SKS Microfinance CFO Dilli Raj on Thursday said that the current measure would be "hugely positive" for the country's microfinance lenders.