INSUBCONTINENT EXCLUSIVE:
Sebi has sought details from mutual funds about their exposure to all NBFCs and housing finance companies, amid concerns over liquidity in
the system, according to sources.
In recent days, shares of Non-Banking Financial Companies (NBFCs) and housing finance companies have taken
a beating against the backdrop of ILFS group entity defaulting on its debt obligations, triggering fears of liquidity crunch.
The Securities
and Exchange Board of India (Sebi) has sent letters to mutual funds seeking details about their exposure to all NBFCs and housing finance
companies, regulatory and industry sources said.
The companies include DHFL and Indiabulls Housing Finance, they added.
Mutual funds have
significant exposure to these companies and NBFC companies as a whole.
On Thursday, shares of NBFCs and housing finance companies tumbled up
to 8.5 per cent on worries over liquidity.
The scrip of DHFL declined nearly 5 per cent to close at Rs 290.15 while that of Indiabulls
Housing Finance plunged over 6 per cent to end the day at Rs 937.20 on the BSE.
Rating agencies -- Crisil, Icra and Care -- has re-affirmed
the long-term credit rating of Indiabulls Housing Finance at the highest rating of 'AAA' with stable outlook, the company said in a filing
to the BSE on Tuesday.
ILFS Financial Services, a group company of ILFS defaulted on one of its commercial paper (CP) issuances due for
This was the third default by the company.
Earlier in the day, the Reserve Bank allowed banks to dip further into statutory liquidity cash
reserves in a bid to ease a liquidity squeeze afflicting the nation's money markets.
The move by the central bank follows concerns over
tight liquidity conditions and banks' unwillingness to lend to NBFCs.
