MUMBAI (Reuters) - India's market regulator is in talks with industry to deal with fears of contagion effect on mutual funds due to a liquidity crisis faced by the country's non-banking finance companies (NBFC), its chief said on Friday.
The crunch hit India's shadow banks in September and October after Infrastructure Leasing and Financial Services (IL&FS) defaulted on a series of debt obligations spreading panic among other NBFCs.
Securities and Exchange Board of India (SEBI) has been scanning India's mutual funds' investments in the shadow banking sector since then.
"We are examining, in consultation with the industry, and will gradually take appropriate action," Ajay Tyagi, chairman of SEBI said in response to a question if changes are needed in mutual fund regulations.
(Reporting by Abhirup Roy; Writing by Nidhi Verma; Editing by Sanjeev Miglani)
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app