India Debuts First Mortgage-Backed Pass Through Certificates on National Stock Exchange (NSE).

National

In May 2025, M. Nagaraju, Secretary of the Department of Financial Services (DFS), Ministry of Finance (MoF), officially listed India’s first-ever mortgage-backed Pass Through Certificates (PTCs) on the National Stock Exchange (NSE) in Mumbai, Maharashtra. These instruments were structured by the Mumbai-based RMBS Development Company Limited. The listing aims to deepen liquidity in the housing finance sector and attract long-term capital from institutional investors.


      - The listed PTCs are supported by a pool of home loans originated by LIC Housing Finance Limited (LIC HFL), also headquartered in Mumbai. The issue consisted of 1,00,000 units with a face value of ₹1,00,000 each, aggregating to ₹1,000 crore. The offering was fully subscribed, reflecting robust demand from investors.

      - This event marks the first time in India that the coupon rate for a PTC issuance was determined via the NSE’s Electronic Book Provider (EBP) platform—enhancing transparency and price discovery in the market.

     

Main Point :-   (i) The PTCs offer a fixed annual coupon of 7.26% and have an expected maturity of around 20 years, making them suitable for long-term investment portfolios.

      (ii) These securities have been rated AAA(SO) by prominent rating agencies—CRISIL and CARE Ratings—signifying the highest safety regarding the timely repayment of financial obligations under the Structured Obligation (SO) category.

(iii) Issued in dematerialized form, the PTCs are fully transferable and can be traded in the secondary market, thereby ensuring liquidity and ease of exit for investors.

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