INSUBCONTINENT EXCLUSIVE:
Capital market regulator Sebi Friday said it has not issued any advisory to mutual funds against rolling over of their current exposure to
Indiabulls Housing Finance and Dewan Housing Finance
"It has been reported in certain sections of the media that Sebi has advised mutual funds not to roll over their current exposure to
Indiabulls Housing Finance and Dewan Housing
It is clarified that Sebi has not issued any such advisory," the regulator said in a statement
The clarification follows Sebi seeking 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 several housing finance firms and NBFCs as a whole, including through their debt securities
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 of
'AAA' with stable outlook, the company had 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 repayment on Monday
This was the third default by the company
On Thursday, 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.
