Union Finance Minister Arun Jaitley
Union Finance Minister Arun Jaitley on Sunday said that the government will take all necessary actions to ensure adequate liquidity for non-banking financial companies (NBFCs) and mutual funds.
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.
"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.
