To begin with, this is a great idea as it will give an assurance to the existing buyers that their funds will finally get unlocked. Of course, this is only limited to middle range and lower range apartments but that is still good enough as it covers a large chunk of the housing projects that are stalled at this point of time. Here is how the real estate stocks could benefit from this announcement.

· Many of the realty stocks that are currently facing defaults but are having projects that are net worth positive could immensely benefit from this project. This includes cases of NCLT reference.

· Regarding larger players DLF and Prestige Estates, they have not had too many problems of unfinished projects. In fact, DLF only sells completed properties and this could be more targeted at builders who sell apartments at the early stage of the structure itself. However, these stocks could benefit sentimentally from the announcement.

· The reason realty companies will benefit from this move is that it will build consumer confidence in the realty sector and that could be a kind of multiplier effect on the realty demand.

It is a great starting point although the details have yet to be worked out and the RBI will also have to get involved as it entails bank NPAs too. To begin with, it is surely a sentiment boost for realty stocks.