Legally, the asset management company is not supposed to bear any market-related loss.
Rakesh Sharma talks about how the NBFC crisis came about.
Das also pointed out that the central bank has reduced the periodicity of NBFC supervision from 18 months to 12 months and is well aware of the position of top entities operating in the sector.
The NBFC sector has been grappling with funding issues as credit lines from banks froze due to the IL&FS mess.
AMFI data indicates that the outflows from debt funds (including income and gilt funds) shot up to Rs 1.25 lakh crore in FY19 as against Rs 9,128 crore registered a year ago.
The crisis in the NBFC sector started with a series of defaults by IL&FS, which owes over Rs 99,350 crore to banks, from last September.
Banks lent over Rs 70,000 crore to NBFCs in January-March period, which was 12.3 percent higher than the loans extended in the previous quarter.
Investors should continue to focus on stock selection and overlook the clamour that we would hear over the next 6 months, as we approach the general election
The government and the Reserve Bank of India (RBI) have also stepped in and announced various measures to dispel investor concerns
The government and Reserve Bank of India have stepped in and announced various measures to allay investor concerns.