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SKS Micro expects MFI Bill to be tabled soon; stk up-news13032012

Tuesday, March 13, 2012

Shares of SKS Microfinance jumped nearly 8%, touching the weekly high of Rs141, on expectation that the Micro Finance Institution ( MFI) Bill will be tabled in the current session of Parliament.

The draft MF Sector (Development and Regulation) Bill, 2011, that proposes, making it mandatory for microfinance institutions to be registered with the Reserve Bank of India ( RBI) and have minimum net-owned funds of Rs5 lakh could be tabled in this session,' the report suggests.

The draft bill floated by the Finance Ministry in June, 2011 clearly defines microfinance as a financial activity carried out by financial institutions. It also describes MFIs as adjuncts of Banks and makes RBI the overarching regulator of the sector, added report.

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