Financial sector and capital market players on Tuesday appealed to finance minister Nirmala Sitharaman to allow non-banking financial companies (NBFCs) to issue “on-tap” secured bonds and also requested greater liquidity flow to small NBFCs be ensured. At the pre-Budget consultation meeting, the Finance Industry Development Council (FIDC), a body of shadow banks, said NBFCs should be included in the list of eligible sectors under the central bank’s on-tap TLTRO (targetted long-term repo operation) scheme. Top executives of LIC, Axis Bank, Citi Bank (India), UTI Asset Management, Muthoot Group were among those who participated in the meeting.
Earlier in the day, the Financial Stability and Development Council (FSDC), headed by Sitharaman, decided to “keep a continuous vigil” on the financial conditions that could “expose financial vulnerabilities in the medium and long-term”. The Council’s meeting was also attended by heads of regulators, including RBI, Sebi, Irdai, IBBI and PFRDA, as well as top finance ministry officials.
Source: Financial Express
