Finance Minister, Arun Jaitley in a Twitter post on Sunday said that government will ensure measures to maintain credit to corroborate NBFCs, Mutual Funds and SMEs.
The Government will take all measures to ensure that adequate liquidity is maintained/provided to the NBFCs, the Mutual funds and the SMEs.
— Arun Jaitley (@arunjaitley) September 24, 2018
Economic Times in its report suggested Jaitley assured in order to calm down the tensed investors who lost nearly ₹45,000 crores following the NBFC’s crash on Friday. The benchmark Nifty 50 in the equity market on Friday fell over 3%.
NBFCs market ended in red after a buzz which provoked liquidity fears in the market. A fund manager put Dewan Housing Finance Corp’s paper on sale at a yield of 11%.
SBI chairman as reported by ET said, “SBI lends support to NBFCs in the private and public sector within the regulatory policy framework and will continue to do so,” There is no concern on the liquidity of NBFCs in view of their liquid cash position and availability of committed lines.”
The Securities and Exchange Board of India and The Reserve Bank of India said that they were keeping an eye on the developments in the financial sector and will intervene with the suitable measuresNBFC to calm the skittish market.