The shares of the country's only listed micro finance company, SKS Microfinance increased by as much as 19 per cent in the morning trade on the domestic stock exchange following a decision by the union cabinet to begin regulation of the micro finance industry and bring the micro lenders under the jurisdiction of the Reserve Bank of India (RBI).

The shares of the company increased 19 per cent to touch a high of Rs 105.70 on the Bombay Stock Exchange (BSE). On the other hand, the shares of the company increased by 19.63 per cent to Rs 106 on the National Stock Exchange (NSE). According to brokers, 5.24 lakh shares of the company were traded on the BSE, while more than 12 lakh shares changed hands on the NSE during the morning trade.

The bill to begin regulation of the micro finance sector will now be introduced in the parliament. The new regulations will make it mandatory for micro finance institutions (MFI) to be registered with the Reserve Bank and also have minimum net-owned funds of Rs 5 lakh.

SKS Microfinance has recorded a troubling loss of Rs. 330 crore in the fourth quarter till 31, March 2012.

The company's income dropped 63 per cent in the quarter compared to the same quarter in the previous financial year. The company recorded a total income of Rs 66.15 crore when compared with Rs 174.73 crore. Its net loss was at Rs 330 crore for as the copany made write-offs worth Rs 272 crore.