IL&FS scare: Govt steps in to allay investor fears; Arun Jaitley assures all measures to ensure liquidity

Arun Jaitley's remarks come in the wake of stock markets witnessing sudden and stiff fall in intra-day trade on Friday over concerns of liquidity crisis being faced by some of the NBFCs.

Press Trust of India September 24, 2018 09:23:12 IST
IL&FS scare: Govt steps in to allay investor fears; Arun Jaitley assures all measures to ensure liquidity

New Delhi: Seeking to calm the nerves of worried investors, Finance Minister Arun Jaitley said on Monday that the government would take all measures to ensure adequate liquidity for non-banking financial companies (NBFCs) and mutual funds.

The minister's remarks come in the wake of stock markets witnessing sudden and stiff fall in intra-day trade on Friday over concerns of liquidity crisis being faced by some of the NBFCs.

ILFS scare Govt steps in to allay investor fears Arun Jaitley assures all measures to ensure liquidity

File image of Union minister Arun Jaitley. Reuters

"The Government will take all measures to ensure that adequate liquidity is maintained/provided to the NBFCs, the mutual funds and the SMEs," Jaitley tweeted ahead of the opening of stock markets.

The Reserve Bank of India (RBI) and market regulator Sebi said on Sunday that they were closely monitoring the developments in the financial sector and were ready to take "appropriate actions" to calm the jittery investors.

There are liquidity concerns following default in repayment of loans by diversified IL&FS group. Another housing finance company, DHFL, too is reportedly facing liquidity crisis.

On Friday the 30-share BSE Sensex suddenly tanked 1,127.58 points, or 3.03 percent, to hit a low of 35,993.64 in afternoon trade before staging an equally sharp recovery within minutes.

The markets had opened on a strong note. After an intra-day swing of 1,495.60 points, the Sensex closed at 36,841.60, down 279.62 points.

The broader NSE Nifty shed 91.25 points to finish at 11,143.10 on Friday.

Updated Date:

also read

Why a trial by fire awaits Narendra Modi’s new finance minister, Nirmala Sitharaman
Business

Why a trial by fire awaits Narendra Modi’s new finance minister, Nirmala Sitharaman

The big political messaging Modi wants to send to his party colleagues with Sitharaman’s appointment could be that performers will be rewarded in this government

Sensex tanks nearly 537 points to end at over two-month low of 36,305, Nifty crashes below the 11,000-mark
Business

Sensex tanks nearly 537 points to end at over two-month low of 36,305, Nifty crashes below the 11,000-mark

The 30-share Sensex hit a low of 36,216.95 before settling at 36,305.02, down by 536.58 points or 1.46 percent -- the biggest single-session fall since 6 February when it had lost 561.22 points.

Finance ministry urges Reserve Bank of India to take steps to ease liquidity in the system, tackle credit crunch
Business

Finance ministry urges Reserve Bank of India to take steps to ease liquidity in the system, tackle credit crunch

The RBI could explore buying more bonds from the open market and open a special window for mutual funds to inject liquidity