TIL Desk/Business/New Delhi/ The government will take all measures to ensure adequate liquidity for non-banking financial companies (NBFCs) and mutual funds, Finance Minister Arun Jaitley said on Monday in the wake of the uncertainty created by the ongoing debt crisis in the IL&FS group.
Jaitley’s assurance comes after the shares of housing finance companies came under sudden heavy selling pressure on Friday amid crisis at the Infrastructure Leasing and Financial Services Ltd (IL&FS).
“The Government will take all measures to ensure that adequate liquidity is maintained/provided to the NBFCs, the mutual funds and the SMEs,” the Finance Minister tweeted.
In this regard, both the Reserve Bank of India (RBI) and markets regulator Securities and Exchange Board of India (Sebi) said on Sunday that they were closely monitoring developments in the financial sector and were ready to take appropriate action if required.
Also on Sunday, the country’s largest lender — state-run State Bank of India (SBI) –asked NBFCs not to worry about credit availability as it would continue to support them.
