Sunil Subramaniam of Sundaram MF said there was no sense of panic in the industry.
Sunil Subramaniam, CEO and MD of Sundaram Mutual Fund, said there is no need to cap sector lending exposure given that Securities and Exchange Board of India (SEBI) already has sufficient checks and balances.
Sundaram MF is confident the Reserve Bank of India (RBI) will ensure there is no liquidity crunch in the market, Subrananiam said.
The comments came after NBFC stocks witnessed heavy selling amid concerns that the companies' balance sheets were weak and they were facing a liquidity crunch.
However, Subramaniam said there was no sense of panic in the industry.
"If you look at the industry where it has raised the money, a significant portion of that is in fixed maturity plans (FMPs)," he said.Referring to 2013 crisis, Subramaniam said, "About a few years ago Sebi changed the rule saying that from FMPs you cannot take out money before; whereas during the previous crisis you could pay exit load and take money out of FMPs too. So there was a sense of panic in 2013 because a lot of people were willing to pay the exit load and get out of long-term holdings."