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Govt approves Special liquidity scheme for NBFCs and HFCs

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    7th Jul, 2020
  • Govt has approved special liquidity scheme for NBFCs/HFCs to avoid potential systemic risks in financial sector
  • The Scheme is launched through Special Purpose Vehicle (SPV) in the form of SLS Trust set up by SBI Capital Markets Limited
  • Under this, SPV will purchase the short-term papers from eligible NBFCs/HFCs (whose NPA is not more than 6%)
  • Commercial papers (CPs) and non-convertible debentures (NCDs) will be used as instruments with 3 months maximum maturity period.