Government mulls further measures for NBFCs, markets: Report
At a meeting chaired by FM Sitharaman, RBI officials raised concerns over liquidity challenges being faced by NBFCs and various state and micro finances.
May 29, 2020 / 05:07 PM IST
The Centre is planning additional policy measures for non-banking finance companies (NBFCs), along with regulatory changes in financial markets.
Finance Minister Nirmala Sitharaman on May 28 chaired a meeting of the Financial Stability and Development Council (FSDC).
At the meeting, the officials discussed volatility in the market and liquidity issues faced by NBFCs and housing finance companies (HFCs) amid the COVID-19 outbreak, Business Standard reported.
Moneycontrol could not independently verify the story.
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Reserve Bank of India (RBI) Governor Shaktikanta Das and Securities and Exchange Board of India (SEBI) Chairman Ajay Tyagi were present at the FSDC meeting.
SEBI suggested measures to boost domestic investment in financial markets.
"Increasing participation of domestic investors increases the linkages between the domestic markets and foreign investors, which prevents excessive volatility," a source told the publication.
The RBI raised the issue of debt markets, since many companies have sought relief since they raised money through non-convertible debentures (NCDs) which are approaching maturity, the report said.Follow our full coverage of the COVID-19 pandemic here.