LIC to pick up to 10% equity stake in NHB promoted ‘RMBS’ entity?
Economy Business
Insurance behemoth Life Insurance Corporation of India (LIC) is planning to acquire up to 10 percent equity stake in a company promoted by the National Housing Bank (NHB).The Board of Directors of LIC on Monday gave their approval to the proposal to invest in the NHB promoted entity that would focus on residential mortgage-backed securities (RMBS), according to a regulatory filing by LIC with the stock exchanges.
LIC to pick up to 10% equity stake in NHB promoted ‘RMBS’ entity
RMBS are debt-based assets/bonds secured by interest from residential loans (Home loans), making them generally considered a safer investment than some other asset types.
RMBS comprises various tranches with different credit ratings reflecting risk and seniority. Investors receive monthly interest and principal payments from the pooled mortgages.
About Life Insurance Corporation:
Chairperson: Siddhartha Mohanty, Founder: Government of India
Founded: 1 September 1956, Headquarters: Mumbai
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