**Summary:**
On May 5, 2025, the Ministry of Finance, Government of India, announced the listing of India's first mortgage-backed Pass-Through Certificates (PTCs) on the National Stock Exchange (NSE). Shri M. Nagaraju, Secretary, Department of Financial Services, Ministry of Finance, officially listed the PTCs, which were structured by RMBS Development Company Limited and backed by a pool of housing loans originated by LIC Housing Finance Limited. The issuance consisted of ₹1,000 crore, comprising 1,00,000 PTCs with a face value of ₹1,00,000 each, and was fully subscribed. The coupon rate of 7.26% per annum was discovered on the NSE's Electronic Book Provider (EBP) platform. The PTCs have a final maturity of approximately twenty years and have been assigned a AAASO rating by both CRISIL and CARE Ratings. Issued in demat form and listed on the NSE, these PTCs are transferable and tradable in the secondary market. Shri Nagaraju emphasized the critical role of the housing sector and housing finance in driving economic growth, highlighting the forward and backward linkages with various industries, including infrastructure. He also stated that securitization could integrate the housing finance and debt markets and that RMBS could act as a catalyst for the growth of the housing finance sector.
Key Entities Referenced
Ministry of Finance: The Indian government ministry responsible for economic policy, financial regulation, and taxation.
National Stock Exchange: A stock exchange located in India where the Pass Through Certificates were listed.
Department of Financial Services: A department within the Ministry of Finance.
Shri M. Nagaraju: Secretary, Department of Financial Services, Ministry of Finance.
RMBS Development Company Limited: The company that structured India's first Mortgage Backed Pass Through Certificates (PTCs).
LIC Housing Finance Limited: A housing finance company whose housing loans back the Pass Through Certificates.
CRISIL: A credit rating agency that provided a rating for the Pass Through Certificates.
CARE Ratings: A credit rating agency that provided a rating for the Pass Through Certificates.
Ministry of Finance
India’s first mortgage backed Pass Through
Certificates listed on the National Stock Exchange
Secretary, DFS stresses the importance of housing
sector and the housing finance sector for the growth
of the economy
Posted On: 05 MAY 2025 7:21PM by PIB Delhi
Shri M. Nagaraju, Secretary, Department of Financial Services, Ministry of Finance listed India’s first
Mortgage backed Pass Through Certificates (PTC) structured by RMBS Development Company Limited on
the National stock Exchange on 05 May 2025. Listing was done by Shri M. Nagaraju by ringing the bell. The
listing ceremony was attended by several Heads of Banks, Housing Finance Companies and other financial
institutions.
These PTCs are backed by pool of housing loans originated by LIC Housing Finance Limited. The issue of
Rs. 1,000 crores (1,00,000 PTCs of Face value of Rs. 1,00,000/-). was fully subscribed.
This is the first issue of a PTC where the coupon was discovered on the “Electronic Book Provider (EBP)“
platform of the National Stock Exchange. The final maturity of the PTC issued will be nearly twenty years
and the coupon is 7.26% per annum. The rating of the Instrument is AAA(SO) by CRISIL and CARE
Ratings. These PTCs are issued in demat form and are transferable. As the PTC is listed on a stock exchange,
they can be traded in the secondary market.
Speaking on the occasion, Shri Nagaraju stressed the importance of housing sector and the housing finance
sector for the growth of our economy. He stated that housing finance has many forward and backward
linkages with many other industries including the infrastructure. With a country of such vast population,housing needs have to be addressed at the earliest to achieve overall economic development.
He stated that securitization can act an integrating factor for housing finance market and the debt market.
Reiterating the importance of RMBS, he stated that it could act as a catalyst for the growth of the housing
finance sector.
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NB/AD
(Release ID: 2127137)