Business

FM Arun Jaitley Assures Support To NBFCs And SMEs

JAVED SAIFI | 0
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| September 24 , 2018 , 12:43 IST

In the presence of domestic stock market crash, to calm down the investors nerves and tensions seeking support from the government, Union Finance Minister Arun Jaitley said that the government will take all measures to ensure that adequate liquidity is maintained for the Non- Banking Financial Companies (NBFCs), Mutual funds companies and the Small Medium Enterprises (SMEs).

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

A week ago the Indian stock market was riding on growth with touching above 38,000 points at the Bombay Stock exchange, but from the last couple of days, a number of investors have been losing money at BSE and NSE.

Similarly, the State Bank of India (SBI) on Sunday had asked NBFCs not to worry about the credit availability as it would continue to support them.

SBI Chairman Rajnish Kumar gave the assurance after the shares of housing finance companies came under sudden heavy selling pressure on Friday amid the crisis at the Infrastructure Leasing and Financial Services Ltd (IL&FS).

Also Read: Untruths & Vulgarity No Reason For PM Modi To Participate In Rafale Debate: Arun Jaitley

"Some comments are being attributed to the SBI about it being wary of lending to the NBFCs. The rumours are baseless. The SBI lends support to the NBFCs in private and public sectors within the regulatory policy framework and will continue to do so," Kumar said in a statement.

"There is no concern on the liquidity of NBFCs in view of their liquid cash position and availability of committed lines," he said.

According to experts, the recent fall in NBFC stocks is the result of a tightening in the money market and a lack of clarity on the IL&FS debt crisis.

On Monday BSE Sensex is at 36,452.12 points, decline by 389.48 from its previous close whereas the Nifty is at 11,006.05 points, down by 137.05 points from its previous close.

According to reports, the market capitalisation value of BSE listed companies fell by Rs 2,02,433.26 crore on Friday.

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

(With Inputs From IANS)