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.
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.
"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 Government will take all measures to ensure that adequate liquidity is maintained/provided to the NBFCs, the Mutual funds and the SMEs.
— Arun Jaitley (@arunjaitley) September 24, 2018
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.
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