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

National | Dated: 10 May 2025

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.

🎯 Key Highlights:

  • - 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.

💡 Other Important Facts:

  • (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.

📚 Test Your Knowledge:

What significant financial instrument did India recently list for the first time on the National Stock Exchange (NSE)?

Correct Answer: Mortgage-Backed Pass Through Certificates (PTCs)

🚀 Quick Recap: