Check out: Tulsian's views on Unitech, ADAG stocks

Also read: RBI releases report on NBFC issues

Below is the edited transcript of his interview with Udayan Mukherjee and Sonia Shenoy of CNBC-TV18. Also watch the accompanying video.

Q: Unitech and the ADAG, the CBI seems to have backed tracked a little bit about the evidence that they had in hand. What did you make of what the CBI is saying now?

A: It is a big U-turn. In the case of Unitech, CBI has clearly said that no money trail has been found. Even in case of ADAG, it has been said that three officials are not involved. Definitely, it is a bit surprising as of now. But, yes, it is giving relief to the share price of all the companies who are likely to be beneficiary of softening of the stand by CBI.

Q: Any take on the NBFC norms? The higher risk weightages, tougher norms on margins funding, do you think it might make life difficult for the listed NBFCs?

A: I don’t think that they will be having any problem. One, the provisioning may get increased by couple of points, maybe for one-two quarters, but it won’t increase in every quarter.

Two, I think this is very healthy for the capital market. This is going to be very healthy for the NBFCs, especially for the capital market. Now we will not see the manipulations or the price rigging, which we are experiencing, especially in the midcap and smallcap stocks.

Q: Are there any specific stocks in the infrastructure basket that interest you as a buy at this point?

A: If you see the recovery or maybe the pullback, I don’t think much is happening in case of infra space. I don’t think that there is renewed buying interest. Even on a fundamental basis, we are not seeing any kind of renewed interest returning to this sector.

Q: Would you get excited about names like Reliance Capital , IFCI etc in terms of getting a new license?

A: Going by the statement of Reserve Bank Governor, I don’t think that private groups like Reliance Group or especially the ADAG group will find place in this list.

On IFCI, the kind of business model they have adopted is more tilted in favour of this stock financing or the listed stock financing to make use of their surplus or maybe their idle funds. I don’t think that is really a convincing business model.

Sometimes you feel that probably IFCI has derailed from its core business or its focus business just to make money. Last year, we have seen them investing them into the rights issue and all kind of stuff and now we are seeing them lending more against the listed shares. I don’t think that both are really will be qualified for the banking license.